Piper Jaffray: A Steal Or A Sinking Star?

Vulture investor Martin J. Whitman is positively gleeful. What misfortune is making this big-game value hunter so happy? The same event causing thousands of others so much grief: the derivatives debacle at Piper Capital Management Inc., an arm of Minneapolis-based Piper Jaffray Cos., the venerable regional brokerage. As the sharp upturn in interest rates brought huge losses to some Piper bond funds, the firm's stock plunged--and Whitman stepped in, spending about $9.5 million to amass a 6.3% stake. At an average price of $12 per share, "we got an absolute steal," he crows.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.