Company Overview - LoanDepot, Inc. (LDI) is a leading U.S. mortgage originator and refinancer, having issued around $30 billion in loans last year, a decline from approximately $100 billion in 2020 due to rising interest rates rather than fundamental weaknesses [2] - The company operates in 20 countries with roughly 5,000 employees and has a market capitalization near $2 billion [3] Market Dynamics - LDI's business contracts when interest rates rise but expands significantly when they fall, indicating a leveraged upside potential during any sustained easing cycle [2] - The current environment presents a contrarian entry point with asymmetric upside potential once rate pressures subside and refinancing demand rebounds [4] Financial Performance - As of December 1st, LDI's shares were trading at $2.7100, with a forward P/E ratio of 26.95 [1] - The stock previously traded above $30 during the low-rate environment of 2021, suggesting potential for material rerating once macro conditions improve [3] Investor Sentiment - Concerns regarding insider selling are considered overstated, as the CEO's compensation is heavily equity-based and insider ownership remains high at approximately 85%, indicating strong alignment with shareholders [3] - At the end of the second quarter, 8 hedge fund portfolios held LDI, a decrease from 14 in the previous quarter, suggesting a shift in investor interest [6]