Alluvial Capital Management recently released its Q3 2026 investor letter for “Alluvial Fund.” The letter can be downloaded here. Alluvial Fund outperformed in Q3, rising while benchmarks fell 7%. Amid macroeconomic anxiety, high bond yields, and AI trade deflation, investors gravitated toward steady cash flows. Beyond defensive strength, outperformance was driven by portfolio holdings executing capital returns, balance sheet rights offerings, and value-accretive partnerships. Although the market remains unpredictable, Alluvial Fund is committed to investing in firms with robust balance sheets and capable management. Also, check the Fund’s top five holdings to see its best picks for 2026.
In its Q3 2026 investor letter, Alluvial Fund highlighted Bank7 Corp. (NASDAQ:BSVN) as a newly added position. Bank7 Corp. (NASDAQ:BSVN) is a bank holding company that provides banking and financial services to individual and commercial customers, including business loans, real estate financing, and deposit products. On November 12, 2026, Bank7 Corp. (NASDAQ:BSVN) closed at $58.65 per share with a market capitalization of $629.52 million. Over the past month, Bank7 Corp. (NASDAQ:BSVN) gained 0.63%, bringing its 52-week gain to 41.32%.
Alluvial Fund stated the following regarding Bank7 Corp. (NASDAQ:BSVN) in its Q3 2026 investor letter:
“We added multiple new holdings to the portfolio during the quarter. The most notable of these is Bank7 Corp. (NASDAQ:BSVN). I like to present Bank7 because it is emblematic of the kind of research we do at Alluvial—largely ad hoc, but with certain recurring workflows and processes. I spend a good amount of time sifting through corporate mergers and acquisitions announcements, looking for deals that will create a dramatic change in economics for the companies involved and assessing the market’s reaction. In my experience, the smaller or the farther afield the companies are, the more likely it is that the market errs in its evaluation. It doesn’t happen often, but it happens often enough to make the search worthwhile.
In early July, I noticed an intriguing headline. Bank7 Corp. would buy a 71% stake in New Mexico bank Century Financial Services. Right away, I was interested. While banks buy other banks all the time, they don’t often buy portions of other banks. It turned out Bank7 was buying a majority stake in Century through a court-sanctioned sale process. Century’s majority owner had enjoyed the high life a little too much, and a creditor won a court order appointing a receiver to auction off his majority ownership in Century. Now, if you are a business looking to sell, a receiver-led auction is about the worst way to do it. The timeline is accelerated giving bidders limited time for diligence, and there is no option to back out if the offers are underwhelming. Subject to court approval, the best bid wins. The fact that a bank was being auctioned only reinforced the inefficiency. As highly-regulated businesses, banks can generally only be acquired by other banks or by sophisticated funds or individuals with experience in banking…” (Click here to read the full text)
Source: finance.yahoo.com
