Since announcing that Mr. Lorello would assume the role of head of investment banking, Jefferies has announced more than 50 significant hires in the investment bank yet the stock price is down. Granted, its only been two years, but at what point do the shareholders begin to see a return on all these investments? Mr. Lorello has an outstanding track record of hiring and making himself and his underlings a TON of money, however, when do the shareholders see any benefit?
Interesting stock trends:
Since June 17, 2009 (the date Mr. Lorello is rumored to have joined Jefferies): JEF: +15.7% Dow Jones: +49.4% NASDAQ: +58.7%
Since October 17, 2009 (the date Jefferies publicly announced Mr. Lorello had joined): JEF: down 19.1% Dow Jones: +26.9% NASDAQ: +33.1%
Us longs all hope the aggressive style of Mr. Lorello - and Jefferies - pays off, however, early results are not encouraging. any thoughts are appreciated!