Are U.S. ‘junk’ financials reborn?
Third Point Capital’s Dan Loeb has reported a concentrated position in the financial crisis horror story CIT, which is now being led by ex-Merrill Lynch CEO John Thain:
CIT is currently one of our largest positions because we believe it presents a compelling option on the potential revitalization of one of the country’s largest middle‐market lenders as it transitions (according to our thesis) to a lending institution which will be funded eventually via a retail deposit base.
As shown in the graphic above, financials constitute his largest exposure. A second infamous financial, Citi, is part of the collection as well: