The Wall Street Journal: Ex-JPMorgan officer takes stake in embattle Deutsche Bank, backs management
A New York-based activist hedge fund has taken a stake in Deutsche Bank AG DBK, +2.07% betting the German lender’s new chief executive can revive its sagging profits by pursuing a turnaround strategy investors so far have found unconvincing.
Hudson Executive Capital LP, led by former JPMorgan Chase & Co. JPM, +2.17% finance chief Douglas Braunstein, said it has built about a 3.1% stake in Deutsche Bank common shares.
The investment, Hudson’s biggest so far, was made in recent months as Deutsche Bank shares plumbed all-time lows. The roughly $ 620 million stake makes Hudson a top-five shareholder, and the first new one of size since the bank’s latest restructuring and CEO change in April.
In an interview, Braunstein called Deutsche Bank “misunderstood and undervalued,” a conclusion he drew during almost a year of talking to current and former executives and other finance contacts. His initial impression in late 2017 was that the management team at the time was “as dysfunctional as you could basically find.” Current executives seem unified in efforts to cut costs and boost revenues, he said.
An expanded version of this report appears on WSJ.com.
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