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    Edward Hemmelgarn

    Research Analyst at Shaker Investments

    Edward Hemmelgarn is CEO and Co-Chief Investment Officer at Shaker Investments, specializing in portfolio management across healthcare, financial services, and real estate sectors. As founder of Shaker Investments in 1991, he leads the investment team and oversees all three of the firm's strategies, guiding the firm to receive accolades such as the Manager of the Decade Award for the Shaker Small Cap Growth Strategy in recognition of superior risk-adjusted returns. Hemmelgarn's career began in financial management roles at Ernst & Young and as Chief Financial Officer for Retail Banking at Ameritrust (now KeyBank) before founding Shaker Investments; he holds a BA in Chemistry and an MBA from Case Western Reserve University, is a former CPA, and has earned multiple alumni honors. He also serves on boards including the Cleveland Museum of Art and maintains active involvement at Case Western Reserve University.

    Edward Hemmelgarn's questions to Axos Financial (AX) leadership

    Edward Hemmelgarn's questions to Axos Financial (AX) leadership • Q3 2025

    Question

    Edward Hemmelgarn questioned the company's high equity levels and loan loss provisions, asking if it reflected increased conservatism. He also requested more detail on increased IT spending and specific examples of AI deployment.

    Answer

    CEO Gregory Garrabrants explained that higher equity ratios are a result of both a strategic decision to maintain a strong balance sheet and a natural shift in the asset mix toward higher risk-weighted assets. He and CFO Derrick Walsh clarified that the loan loss provision is heavily influenced by the forward-looking CECL model and external economic forecasts, not just current performance. Mr. Garrabrants provided AI examples, including using low-code platforms to accelerate development, AI for improving the software development lifecycle, and extracting structured data from unstructured documents.

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    Edward Hemmelgarn's questions to Axos Financial (AX) leadership • Q1 2025

    Question

    Edward Hemmelgarn of Shaker Investments asked about the percentage of the loan book in participations versus direct originations, whether underwriting is stronger on direct deals, and if the bank's net interest margin (NIM) would eventually revert to its historical 3.8%-4.0% range.

    Answer

    President and CEO Greg Garrabrants explained that the mix of direct versus syndicated loans varies greatly by business line. He affirmed his belief that underwriting is stronger on direct deals, contrasting the specific risks of C&I lending with the bank's highly structured, low-LTV commercial real estate lending. Regarding the NIM, he stated that structural changes, including a stronger commercial deposit franchise, support a new, higher range of 4.25% to 4.35% (excluding FDIC benefits), making the old range outdated.

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