Brian Pitkin presented his in-depth investment thesis on JP Morgan (NYSE: JPM) at Best Ideas 2016.
JP Morgan has greater earnings power with more stability and a stronger foundation than the market is accounting for, and the company’s TARP warrants provide a unique opportunity to take advantage of the market’s shorter-term viewpoint of JP Morgan and the banking business. JP Morgan is undervalued against current earnings, is substantially under-earning its potential, is consistently growing tangible book value per share, has a fortress foundation of capital and liquidity, has shown great stability in revenue and returns and is moving to and beyond $30 billion in net income. JP Morgan is a best-in-class franchise trading at a historically low valuation.
About the instructor:
Brian E. Pitkin is the Founder and Managing Partner of URI Capital Management. Brian, through URI Capital Management, has successfully managed a long term, value focused fund, URI Capital Partners, since August 2012 enabling him to follow his long time passion for deep business analysis and long term value investing. Brian began his career in Investment Banking at Merrill Lynch, and then joined The Edgewater Funds, a Chicago private equity firm. Brian ultimately returned to family-owned Ulrich Chemical, a Midwest chemical distributor where he helped accelerate both top and bottom line growth. He then negotiated and executed the sale of Ulrich to Brenntag, a global chemical distributor, before leaving to start his own ventures, now dominated by managing the fund URI Capital Partners. His background in both investing and managing businesses has contributed to his understanding of what makes for a successful business and thus a successful long term investment. URI Capital Partners is long only and highly concentrated. While this may present more volatility in the short term, the longer term results can be markedly better than if hedged through over diversification and shorting. We are not willing to sacrifice those higher potential longer term returns for a more comfortable journey. Investing in good companies at good valuations, avoiding leverage and exotic trading instruments and requiring margins of safety serves to solidify our foundation and protect investor dollars.
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