Cooperman To Navient: Just Give Up

He thinks the student-loan company would be better off selling its assets

- Shahien Nasiripour

Leon Cooperman loves student-loan giant Navient Corp. The billionaire hedge fund investor believes the company, which has a contract to manage and collect payments on federal student loans, performs a valuable public service. He also likes Jack Remondi, the chief executive he calls a “high- quality guy” running a “noble” business.

But the rest of Wall Street—not to mention the Consumer Financial Protection Bureau and some states—don’t share Cooperman’s affection for Navient. The stock is trading at about $13 per share, below both the $25 Cooperman thinks it’s worth and Remondi’s “low- to mid-$20” mark. It’s also fighting lawsuits that accuse it of cheating student debtors, and there’s little sign that government scrutiny will abate.