Meredith Whitney's Firm is Reeling from Blown Calls, Frustrated Employees
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Traders today are talking about the fall from grace of famed bank analyst Meredith Whitney.
After making a name for herself during the credit crisis for a prescient call that Citigroup (NYSE: C) would be forced to cut its dividend, she has been reeling over the past few years by an equally-unimpressive call that municipal bonds would blow up. Now the firm she started in 2009 - Meredith Whitney Advisory Group - is seeing the residual effects of her blown calls and apparent lack of work ethic.
A Wall Street Journal story this weekend noted that more than half of her original 30 clients have left the firm. Firms like Elliott Management, Paulson & Co. and Balyasny Asset Management no longer make up the firm's remaining 14 clients. In addition, the firm's staff is down from five full-time investment professionals to just one, not including Ms. Whitney herself.
Research from the firm has also been sparse, with just three research pieces since the beginning of May and no corporate reports since May 23, according to the firm's website.
Former staffers say Whitney still has an impressive contact list and does a good job evaluating broad moves in financial shares, yet her work habits have been frustrating. Apparently, Whitney works from Bermuda during long weekends on the island.
Given that Whitney charges clients $100,000 for her research, remaining clients might be re-evaluating services amid the article.
Link to WSJ Article
After making a name for herself during the credit crisis for a prescient call that Citigroup (NYSE: C) would be forced to cut its dividend, she has been reeling over the past few years by an equally-unimpressive call that municipal bonds would blow up. Now the firm she started in 2009 - Meredith Whitney Advisory Group - is seeing the residual effects of her blown calls and apparent lack of work ethic.
A Wall Street Journal story this weekend noted that more than half of her original 30 clients have left the firm. Firms like Elliott Management, Paulson & Co. and Balyasny Asset Management no longer make up the firm's remaining 14 clients. In addition, the firm's staff is down from five full-time investment professionals to just one, not including Ms. Whitney herself.
Research from the firm has also been sparse, with just three research pieces since the beginning of May and no corporate reports since May 23, according to the firm's website.
Former staffers say Whitney still has an impressive contact list and does a good job evaluating broad moves in financial shares, yet her work habits have been frustrating. Apparently, Whitney works from Bermuda during long weekends on the island.
Given that Whitney charges clients $100,000 for her research, remaining clients might be re-evaluating services amid the article.
Link to WSJ Article
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