NYT Dealbook – Many are earning money, look well capitalized and have reported three consecutive quarters of declining loan losses. Yet the sell-off of the last six weeks has lopped up to a fifth off the value of large and regional players alike, pushing even strongholds like JPMorgan back to book value or below. That ought to make them a bargain, Breakingviews says.
Some sharp investors seem to think so. William A. Ackman, who runs the hedge fund Pershing Square Capital Management, recently bought 150 million shares of Citigroup. David Tepper of Appaloosa Management likes Bank of America, as does another hedge fund manager, John Paulson, who increased his stake in the lender by 11 percent in the first quarter. He told his own investors late last year the stock could hit almost $30 a share — virtually double today’s price.
