Jefferies
November 18, 2011
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RELATED TICKERS: JEF
, LUK
There's a lot of fears swirling around Jefferies right now but I think people are forgetting about who Jefferies has close ties to. Jefferies is one of Leucadia's largest holdings and Leucadia been increasing their position since June 30, when they already owned a little over 27% of the outstanding shares. Fairholme has initiated a position during the last quarter and is no stranger to investing alongside Leucadia. If there was some type of run on Jefferies I believe they would have strong support from some savvy investors. On top of all this, Jefferies management has been very open about their exposure to european debt and other risky securities and is conservatively capitalized in terms of liquid assets. I'm interested to see how this all turns out but I think people are jumping the gun thinking that large investors in Jefferies are just going to sit back and watch Jefferies go down in flames, which I believe is highly unlikely. Let me know what you think.
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