Bank of New York

BK position long First Eagle Investment Management

Thesis

We bought Bank of New York a few years ago because we believed it was under-earning in a few dimensions as a result of interest rates and operational expenses which had room for improvement. The company was re-segmenting its customers in an effort to enhance profitability and we still think there's a discount to intrinsic value.

Did it work?

inconclusive confidence: low

Without specific price performance data or a defined time horizon for the thesis, it's difficult to assess whether the investment thesis has played out. While the operational improvements and re-segmentation efforts may still be valid, we cannot determine the effectiveness of the pitch without knowing how the stock has performed since the recommendation.

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