Forget the so-called 'Trump Bump' because the rally has only begun, say Martin Friedman and Andrew Jose, co-founders of a $700 million hedge fund called FJ Capital that returned 37% in 2016. They formulated a theory that small banks across America were poised to enter a long-cycle of consolidation and began mapping out potential deals. Though valuations have risen in recent months, FJ Capital believes greater industry gains are in store. FJ Capital is not concerned with the median stock in its purview trading at a price of 136% of tangible book value. See more of FORBES coverage of small hedge funds:Meet The Hedge Fund Shaking Up The Market's Best-Performing Asset ClassAriad's $5.2 Billion Sale Netted A $260 Million Windfall For An Icahn ProtegeWhy One Surging Hedge Fund Is Betting EQT Will Win The American Energy Revolution

Source: Forbes January 17, 2017 23:51 UTC