Tom Brown disclosed a 5.32% stake in FMD today. He did not hold any shares as of June 30 filing - Thomas K. Brown is a man with a plan. After spending most of the 80's and 90's working at Smith Barney and other top firms (and earning rewards along the way), Brown made the move to head up Tiger Management's North American financial services group. He stayed under the notorious Julian Robertson until 2000, when he left Tiger to launch his Second Curve Capital, a fund that invests in financial stocks. Since then, his fund has been wildly successful, netting a 20% average annual return, net of fees, compared to just over 4% for the S&P's financials index. In other words, Tom Brown knows his financial stocks, a skill he knows is not for everyone. "The language and the accounting are different," he says. "It takes a familiarity that many portfolio managers may not have."
How is FMD generating revenue except for their loan origination platform which has very limited growth prospects. Obama took over 90% of the student loan business and put it in federal control when lending dried up in 2007. That is not about to change anytime soon. Any chance of FMD lending and securitizing student loans is long gone. The only thing to buy here is the current cash on hand... What source is there for growth?