Jefferies Group, Inc.

  • Fairholme & Bruce Berkowitz’s Bearish Moves; Should You Follow?

    By Meena Krishnamsetty - May 31, 2013 | Tickers: CIT, JEF, MBI, JOE, WFC

    Each quarter, hedge funds, such as Bruce Berkowitz’s Fairholme, file 13Fs with the SEC. The 13F forms disclose many of the positions held in the fund’s equity portfolio during the quarter. Fairholme is a very large managed fund, with over $19 billion assets under management, and has averaged an annual return of 12.9% over the past decade. We will now take a quick look at five stock more »

  • Merger and a Spinoff at the Same Time

    By Mike Thiessen - March 1, 2013 | Tickers: JEF, LUK

    As part of the New York-based company’s expected merger with investment banking powerhouse Jefferies Group (NYSE: JEF), Leucadia National (NYSE: LUK) has announced plans to spin off its Crimson Wine division and pay a “spin-off” dividend to its shareholders. The spin-off is expected to close on February 25, 2013. Although the terms of the Jefferies-Leucadia merger have not yet been finalized, it appears likely that the deal will be more »

  • 3 Undervalued Picks from Bruce Berkowitz

    By Laura Paur - March 1, 2013 | Tickers: AIG, BAC, JEF, LUK

    Bruce Berkowitz’s Fairholme Fund has an outstanding investment record, but a poor performance in 2011 placed him in the bottom 99% of funds. 2012 has been very strong for Berkowitz as the fund went almost directly to the top 1% as Fairholme’s top financial holdings rebounded sharply. This shows that things change very quickly in the stock market and it is important to have patience and confidence in more »

  • Smart Money is Divided on This Stock

    By Meena Krishnamsetty - February 20, 2013 | Tickers: FXCM, GBL, ITG, JEF, NDAQ

    In sports, being the weakest member of a weak conference is doubly insulting.  Not only is the team bad, but the same team cannot beat other mediocre teams.  Applying this analogy to the stock market of the past three years, you might just come up with Investment Technology Group (NYSE: ITG) as being the analogous aforementioned cellar dweller.  Since the stock market meltdown of 2008, the financial sector has notably more »

  • A Future IBanking Powerhouse

    By Mike Thiessen - January 18, 2013 | Tickers: JEF, KBW, SF

    The pending merger between New York-based KBW ) and St. Louis-based Stifel Financial (NYSE: SF) looks to create a medium-sized financial firm that may punch above its weight on the global markets.
    Announced on November 5, 2012, the deal involves an exchange of cash and stock valued at nearly $600 million. The company formed as a result of the merger will have annual revenue of nearly $2 billion and employ nearly more »

  • Can Jefferies Repeat Bond Performance in 2013?

    By Peter Pham - January 2, 2013 | Tickers: LQD, JEF, JPM, KCG, LUK, NES.DL

    Jefferies Group (NYSE: JEF) posted better than expected results for its fiscal fourth quarter, which saw profits jump by 48% from last year to $71.6 million. Revenues increased by 37% to $760.6 million, which is about $38 million more than analysts’ expectations. It should be noted that Q4-2011, from which the current results are being compared, was particularly tough for Jefferies; its income, excluding extraordinary items, dropped by more »

  • Fairholme Fund Undervalued Picks

    By Federico Zaldua - December 26, 2012 | Tickers: AIG, BAC, JEF

    Bruce Berkowitz’s Fairholme Fund has an outstanding investment record, but a poor performance in 2011 placed him in the bottom 99% of funds. This year has been very strong for Berkowitz as the fund went almost directly to the top 1% as Fairholme’s top financial holdings rebounded sharply. This shows that things change very quickly in the stock market and it is important to have patience and confidence more »

  • Make 5% in a Few Months Off This Investment Bank

    By Mike Thiessen - December 6, 2012 | Tickers: BRK-B, GS, JEF, LUK

    On Monday November 12, Leucadia National (NYSE: LUK) announced that they are buying the investment bank Jefferies (NYSE: JEF).  This acquisition is their largest yet and Jefferies shareholders will make up about 36% of LUK stock.  This values Jefferies at around $3.6 billion. Leucadia has been seen as a smaller version of Berkshire Hathaway (NYSE: BRK-B) but this transaction isn’t in line with Buffett’s style. 

    Jefferies has more »

  • Leucadia, Isle of Paradise, Place of Shelter?

    By Jonathan Lim - December 3, 2012 | Tickers: BRK-B, ITT, JEF, LUK

    In Greek, leucadia means "isle of paradise" or "place of shelter." It's also the name of a seaside community outside San Diego. A fitting name, I'd wager. I haven't been there. But we're here to discuss the stock market, so our focus must shift to yet another Leucadia.

    This Leucadia, Leucadia National (NYSE: LUK), is named after Leucadia, Calif. It's a conglomerate in the most more »

  • A Knight Deal Draws Closer

    By Matt Koppenheffer - November 30, 2012 | Tickers: JEF, KCG, AMTD, BX

    The Wall Street Journal is reporting that Virtu Financial may have an early edge in the race to buy the battered Knight Capital (NYSE: KCG).

    Interestingly, the WSJ's article implies that the deal -- with either Virtu or Getco -- would likely be for the whole company. That contrasts earlier reports (also from WSJ) that the deal would be for just Knight's market-making business. That is probably a better deal more »

  • Bruce Berkowitz is a Bull on These Stocks, Should You Be?

    By Meena Krishnamsetty - November 21, 2012 | Tickers: AIG, BAC, CIT, JEF, WFC

    Bruce Berkowitz founded Fairholme in 1997, and is a former senior portfolio manager for Lehman Brothers and managing director for Smith Barney. Berkowitz was named Morningstar's domestic stock fund manager of the decade for 2000-2009. Berkowitz has managed to beat the market for every year but 2003, and in 2010 the Fairholme Fund returned 25.5%, beating the market by 10%.

    Fairholme recently filed a 3Q 13F with the more »

  • Leucadia Buys a Succession Plan

    By Alex Gray - November 14, 2012 | Tickers: JEF, LUK

    On the morning of November 12, it was announced that Leucadia (NYSE: LUK) would acquire Jefferies Group (NYSE: JEF) in an all-stock transaction.  According to the release, Jefferies shareholders are to receive 0.81 of a share of Leucadia valuing Jefferies at approximately $3.6 billion at the time of the announcement. 

    This transaction did not really come as much of a surprise since Leucadia already owned approximately 28.6 more »

  • iBanking: An Analysis of 2 Investment Boutiques

    By Maxwell Fisher - October 30, 2012 | Tickers: EVR, GHL, JEF, LAZ

    The 2000’s were a tough time for investment bankers toiling in the traditional advisory areas.  In the wake of Sandy Weil’s game of chicken with the U.S. Congress that led to the repeal of Glass-Steagall, commercial banks encroached on the turf of the investment banks and the investment banks responded by bulking up.  It was the decade of the trader, VaR exploded as banks embraced risk and more »

  • This Company is Raising Cash… Should You?

    By Alex Gray - October 26, 2012 | Tickers: IMN, JEF, LUK, MLI

    Exiting investments is nothing new for Leucadia National Corporation (NYSE: LUK).  Over the years, Leucadia has been in and out of several different businesses and equity investments.  Whether coincidental or by design, Leucadia has recently been in liquidation mode.    

    In the first quarter of this year, Leucadia sold 100 million shares of its approximately 130.5 million remaining shares in Fortescue Metals Group (ASX: FMG) for $506.5 million.  This more »

  • Why This "Mini Berkshire Hathaway" is in My Portfolio

    By Josh Kohn-Lindquist - October 15, 2012 | Tickers: JEF, LUK

    Affectionately known as "Mini Berkshire Hathaway," Leucadia National (NYSE: LUK) has a long and impressive history of growing returns for shareholders.  Since taking over the helm in 1979, Ian M. Cumming and Joseph S. Steinberg have delivered annual returns of over 22% and have grown Book Value per Share from $0.11 to its current price of $24.91.  This equates to about 17% yearly growth in BVPS, which shows more »

  • Who Lost Big on This Electronic Trading Glitch?

    By Meena Krishnamsetty - September 28, 2012 | Tickers: JEF, KCG, SF, AMTD, BX

    Knight Capital Group Inc. (NYSE: KCG) called Royce & Associates a 10.6% shareholder at the end of June. The stake was around 10.4 million shares. Royce & Associates, the Legg Mason affiliate, is a small-cap value focused investment firm that manages various mutual funds. Other big names who owed Knight shares at the end of June were Steven Cohen and AQR Capital Management, at 2.2 million and 1.4 more »

  • "Research in Motion" is Canadian for "Eastman Kodak"

    By Jonathan Yates - August 10, 2012 | Tickers: AMZN, AAPL, BBRY, CAJ, EK, JEF, MSFT, SSNLF

    Like Eastman Kodak, Research in Motion (NASDAQ: BBRY) is following a predictable path that ended up in bankruptcy for a high tech firm that at one time was the sector leader.

    Research-in-Motion, headquartered in the city of Waterloo in Canada, introduced the smartphone to the world.  Eastman Kodak, based in Rochester in Upstate New York, invented the digital camera.  Both made mistakes along the way that ceded primacy to rivals more »

  • Manchester United Ditched Eurozone in Fund Raising

    By Muhammad Bazil - July 12, 2012 | Tickers: ^FTSE, JEF, JPM, NES.DL

    The well known team, Manchester United, one of the world’s wealthiest football teams and holder of 19 championships, has filed a $100 million IPO on the US based NYSE. The announcement came amid speculation that the team would be listing in Singapore, completely avoiding the most comfortable fit, London.

    While the amount has been declared, it is typically a placeholder for the organization to begin paying taxes for potential more »

  • Bruce Berkowitz's Top Stock Picks

    By Meena Krishnamsetty - May 21, 2012 | Tickers: JEF, MCY, SHLD, WFC

    Bruce Berkowitz, who runs Fairholme, initiated a position in Mercury General (NYSE: MCY) and added to his holdings in Sears (NASDAQ: SHLD), Jefferies (NYSE: JEF), and Wells Fargo (NYSE: WFC). Below we examine his picks.

    Mercury General:  MCY writes risk classifications for automobile insurance. We view MCY as a turnaround story given a tough last few years. In December 2011, the company implemented a change in its personal auto rating more »