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Jefferies Brings Major Confirmation for Our Financial Services Names

With the investment banking and asset management sectors poised for growth, we're encouraged about a pair of holdings.

Chris Versace·Jan 9, 2025, 11:45 AM EST

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We have received earnings from investment banking and asset management firm Jefferies JEF.

Those November quarter results saw Jefferies's revenue climb 63% year over year to top the consensus figure, fueled by strong gains across its investment banking, capital markets and asset management businesses. In the annual letter from the CEO, which was published alongside Wednesday night’s earnings report, Jefferies shared that it begins 2025 with “a renewed M&A pipeline that has a higher likelihood of successful execution, a growing IPO backlog, greater demand for capital from companies and private-equity sponsors, and elevated trading volumes.”

We see those words not only as encouraging but also confirming why we own shares of Morgan Stanley MS and Bank of America BAC in the Portfolio. The quarterly results and comments as well as what is shaping up to be a more regulatory-friendly environment should bring similar comments next week from JPMorgan Chase JPM, Goldman GS, Citigroup C and Wells Fargo WFC on Wednesday, January 15, the day before Morgan Stanley and Bank of America report their December quarter results. 

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At the time of publication, TheStreet Pro Portfolio was long MS and BAC.