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Tim Travis
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Tim Travis is a veteran deep value investor and money manager. Travis has extensive experience in traditional investments such as stocks and bonds, in addition to having a unique methodology of combining options and distressed investing with value investing to generate income, reduce risk, and... More
My company:
T&T Capital Management
My blog:
T&T Capital Management Blog
My book:
Learn to Treat Your Portfolio as a Business
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  • JP Morgan Hedges Were Really Prop Trades, Whitney Says

    I agree 100% with Meredith Whitney when she says that the JP Morgan (JPM) trades were prop trades. It is rare for me to agree with Whitney but calling them anything else would simply be inaccurate. A greater question is whether or not there is anything wrong with this. I don't have a problem with banks investing a portion on of their own capital, but I do believe that these types of leveraged bets, on relatively illiquid, and opaque securities does nothing to help the financial system. Cleaning up these "dark pools" would be much more productive than much of the other regulatory hysteria which has only hurt lending and economic growth.

    http://www.bloomberg.com/news/2012-06-19/jpmorgan-hedges-were-really-prop-trades-whitney-says.html

    Disclosure: I am long JPM.

    Tags: JPM
    Jun 19 7:19 PM | Link | Comment!
  • JPMorgan's (JPM) Risk Gauge Aggravated Trading Loss, Dimon Says

    I thought Jamie Dimon handled himself very well in front of Congress. While so much has been made about this trading loss, which really is relatively small compared to the size of the firm, the bigger issue is on the transparency of banking operations. No bank should engage in financial dealings that aren't understandable to someone with financial sophistication. For management to have not caught the excessive risk taking earlier, the operations had to be done in a way in which the ambiguity of the strategy delayed the response time. Regulators should simplify things by keeping all swaps on exchanges, and demanding more transparency on derivative contracts. This doesn't have to be an all out assault on banks and should be done tactfully, but creating a more transparent market place would only benefit capital markets as we have seen by the turmoil of the last 5 years. It's tough to work out compromises on the important issues such as this because politicians and regulators are acting in such a spiteful way against the banks, and the banks are engaged in extensive political lobbying to combat this. Once people work together to do what is best for the economy then I would expect things to really begin to improve.

    Disclosure: I am long JPM.

    Jun 19 7:19 PM | Link | Comment!
  • Woulfe, Completing Buffett Deal, To Start Tungsten Mine In July-Bloomberg

    In an interesting deal Warren Buffett's Berkshire Hathaway (BRK.B) is potentially going to fund the development of a new mine and refinery for Tungsten in South Korea. This partnership with Woulfe Mining Corp (WOF) would be in response to export curbs on raw rare metals from China which has been jacking up prices. The investment would come from Berkshire's IMC International Metalworking Companies BV unit. The most notable parts of this story are that Buffett is seeing some type of opportunity in rare metals, and also how beneficial it is for companies to partner with Berkshire where they get such a sound partner, with ample capital to fund growth given attractive opportunities. This is certainly a huge competitive advantage and it will be essential for Berkshire to keep that culture and focus once Buffett eventually is succeeded.

    http://www.bloomberg.com/news/2012-06-19/woulfe-completing-buffett-deal-to-start-tungsten-mine-in-july.html

    Disclosure: I am long BRK.B.

    Tags: BRK.B
    Jun 19 4:08 PM | Link | Comment!
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