Gator Capital Management’s Investment Thesis for TFS Financial Corporation (TFSL)

3 days ago 9

Soumya Eswaran

Wed, February 18, 2026 astatine 7:50 AM CST 3 min read

Gator Capital Management, an concern absorption company, released its fourth-quarter 2025 capitalist letter. A transcript of the missive tin beryllium downloaded here. In Q4 2025, Gator Capital Management’s Gator Financial Partners, LLC returned 4.14%, Gator Offshore Partners, Ltd. returned 3.96%, and Gator Qualified Partners, LLC returned 6.10%. These comparison to the S&P 500 Total Return Index 2.65% instrumentality and the S&P 1500 Financials Index’s 1.95% return. In 2025, Gator Funds returned 31.94%, 30.90%, and 16.92%, respectively, importantly outperforming some the broader marketplace and the Financials assemblage benchmark. Please reappraisal the firm’s apical 5 holdings to summation insights into their cardinal selections for 2025.

In its fourth-quarter 2025 capitalist letter, Gator Capital Management highlighted stocks specified arsenic TFS Financial Corporation (NASDAQ:TFSL). TFS Financial Corporation (NASDAQ:TFSL) is simply a US-based retail user banking services provider. The one-month instrumentality of TFS Financial Corporation (NASDAQ:TFSL) was 5.51%, and its shares gained 13.56% of their worth implicit the past 52 weeks. On February 17, 2026, TFS Financial Corporation (NASDAQ:TFSL) banal closed astatine $15.33 per share, with a marketplace capitalization of $4.302 billion.

Gator Capital Management stated the pursuing regarding TFS Financial Corporation (NASDAQ:TFSL) successful its 4th fourth 2025 capitalist letter:

"In December, we purchased a presumption successful TFS Financial Corporation (NASDAQ:TFSL) (“TFSL” oregon “Third Federal”). TFSL is the holding institution for Third Federal Savings & Loan, which is simply a $17 cardinal slope headquartered successful Cleveland, OH. TFSL has a unsocial firm structure. It is majority-owned by a communal holding company, portion the nationalist shareholders ain a number involvement successful the bank. We deliberation the communal holding institution operation tin assistance make superior returns for the nationalist shareholders. TFSL’s banal has underperformed since 2021 owed to the summation successful involvement rates during 2022 and the inverted output curve. We deliberation the caller diminution successful short-term rates has helped TFSL crook the corner, but the banal terms does not yet bespeak this turn.

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