# Forest Hill Capital

Forest Hill Capital is an Asset Manager based in Little Rock, United States.

## Overview

- **Organization type:** Asset Manager
- **Headquarters:** Little Rock, United States
- **Region:** North America
- **Address:** Little Rock, AR, United States
- **Founded:** 2000
- **Assets under management:** Undisclosed
- **Website:** foresthillcap.com
- **LinkedIn:** https://www.linkedin.com/company/forest-hill-capital-llc

## Regulatory record

- **CRD number:** 129667
- **SEC file number:** 801-62567
- **Registration status:** Registered
- **Reports private funds:** Yes
- **IAPD record:** https://adviserinfo.sec.gov/firm/summary/129667

## About

est. 2000 | FOREST HILL CAPITAL, LLC, is a registered investment advisory firm established in 2000.

## Sectors

- Financial Services
- Real Estate

## People

- Charles Dugan — Founder and Portfolio Manager

## Questions

### What does Forest Hill Capital invest in?

The firm targets publicly traded community and regional banks, primarily in Southern and Midwestern US markets. It focuses on micro-cap and small-cap depository institutions — often with under $5 billion in assets — trading at discounts to tangible book value. The strategy exploits the lack of sell-side analyst coverage in this thinly followed segment.

### How does Forest Hill Capital source investment ideas?

Sourcing is driven by proximity and specialization. Operating from Little Rock, Arkansas, the firm has direct geographic access to community bank management across the US South and lower Midwest. Dugan's relationships in regional banking circles and continuous regulatory data screening generate deal flow that generalist institutional investors rarely see.

### Is Forest Hill Capital a long-only fund or does it use a hedge fund structure?

It operates as a hedge fund with a permanent-capital mindset. The firm does not offer daily or even monthly liquidity, matching its redemption terms to the inherently illiquid nature of micro-cap bank stocks. This lock-up structure allows multi-year holding periods required for bank turnarounds or merger-driven catalysts.

### What distinguishes Forest Hill Capital's approach from a generic bank ETF or mutual fund?

The firm concentrates capital in a small number of illiquid micro-cap institutions and actively engages management on strategy — often advocating for sale, recapitalization, or operational restructuring. Unlike diversified financial-sector funds, Forest Hill acquires ownership stakes large enough to influence outcomes, in a segment where regulatory complexity deters passive capital.

### Which markets does Forest Hill Capital avoid?

The firm explicitly avoids large-cap money-center banks and most non-US financials. Its model depends on pricing inefficiencies in thinly traded community banks; large-cap institutions with heavy analyst coverage and institutional ownership do not fit the strategy.

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- [Allison & Company Financial Counselors](https://altss.com/profile/allison-and-company-financial-counselors-llc)
- [Donald J. Bugdal & Associates](https://altss.com/profile/donald-j-bugdal-and-associates)

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Last updated: 2026-07-08T23:47:58.253Z

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