For the past year, Jeffrey Gendell's Tontine has been
ravaged by his bet on financial stocks, but he is sticking to
By Britt Erica Tunick
Jeffrey Gendell's steadfast devotion to the financial sector
is testing his reputation as a savvy investor. As some of the
industry's oldest and largest institutions unraveled over the
past year, with no end in sight to the bloodshed, financials
have been among the worst performing stocks. Not surprisingly,
Gendell's long-biased Tontine Financial Partners has been one
of the biggest losers: It was down 71% last year and another
76% through July, its net asset value falling to about $310
million from $1.8 billion in August of 2007.
Tontine had the foresight to unload its more than 170 million
shares of AIG in the second quarter, prior to the insurer's
near-collapse, which spurred a $85 billion government
Last fall, Gendell was predicting...