Webster Financial: Following the Smart Money

Webster Financial Corp. (WBS) is a regional bank, interesting as a value play where the investor has the benefit of the involvement of smart money - in this case, Warburg Pincus.

As a strategy, following the smart money into financials worked horribly during the meltdown, a prime example would be TPG and Washington Mutual. However, the exceptional circumstances which existed last year have now been resolved and/or incorporated into expectations, and this situation makes good sense as contrarian value play.