JP Morgan Chase & Co.
Thesis
In 2009, Jabre noted that he bought US banks, including JP Morgan, after hearing positive comments from the CEOs about their profitability, which signaled a buying opportunity as the market was overly pessimistic about the sector.
Did it work?
worked
confidence: high
Jabre's thesis was that US banks, including JP Morgan, were overly pessimistically priced in 2009 and that positive CEO commentary signaled a buying opportunity. Over the ~17.6 years since, JP Morgan returned +1369.3%, a roughly 14x gain that decisively validates the contrarian long call. The market's pessimism proved misplaced exactly as the thesis predicted, making this a clear success regardless of any stated horizon.