The Acquirers Podcast Derek Pilecki on long/short financials investing, regional banks, non-banks and insurance | S08 E08
23 snips
Mar 5, 2026 
Derek Pilecki, small-cap bank specialist and portfolio manager at Gator Capital, explains why regional banks and non-bank financials look cheap and which franchises survive rising rates. He discusses private credit, yield-curve effects, insurance risks, M&A trends, fintech competition, and how to size long/short positions. Short ideas include complex or structurally weak financials.
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Tangible Book Growth Predicts Bank Outperformance
- High ROE banks that reinvest to grow loans are the best long-term performers; tangible book growth correlates tightly with stock returns.
- Derek says screening for fastest compounding tangible book value over 20 years yields top bank performers.
Limit Averaging Down And Let Winners Run
- Size positions modestly, let winners run, and avoid automatic averaging down.
- Derek starts new positions at ~3–4%, holds ~40 names, lets outperformers grow to 10%, and rarely adds to losers without re-underwriting.
Bank Credit Quality Improved Since The GFC
- Current bank credit quality is much better than pre-GFC due to stronger capital, liquidity, and standardized underwriting.
- Derek reports meeting ten banks where none flagged material credit concerns and loan files are standardized after consulting upgrades.
