Wed, Jan 18, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Hedge funds are betting on Freddie and Fannie’s recovery

Thursday, May 16, 2013

From Komfie Manalo, Opalesque Asia – Hedge funds are betting on the recovery of government-controlled enterprises (GSEs), particularly Freddie Mac and Fannie Mae, reports The Wall Street Journal.

Ironically, these are the same hedge funds which made hundreds of millions in profits when the housing market crashed in 2008, including Freddie and Fannie.

The report identifies hedge funds Paulson & Co. and Perry Capital LLC as among those which have been buying preferred stocks in Freddie and Fannie. Indeed, the two enterprises are returning to profitability as the U.S. housing industry is showing good signs of recovery, and may eventually make payments to preferred shareholders. More importantly, hedge funds are looking for a higher payout this time as they hope that the Feds raises more capital for Freddie and Fannie.

An earlier report by Fierce Finance said that Paulson was looking for big profits on Freddie and Fannie and had been loading up on ultra-cheap preferred shares, betting that firms may someday rise from the ashes by paying off their debts to taxpayers and becoming fully rehabilitated private entities.

Accord......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Southpoint Capital gains 3.8% in Q3, bringing year-to-date returns to 5.2%[more]

    From Valuewalk.com: Southpoint Capital Advisors, the $3 billion New York hedge fund founded by former employees of David Einhorn’s Greenlight Capital, added 3.8% net during the third quarter of 2016, bringing year-to-date returns to 5.2% and cumulative returns since inception (July 2004) of 237.4% a

  2. The Big Picture: The case for emerging market debt in 2017[more]

    Benedicte Gravrand, Opalesque Geneva: Emerging market (EM) assets outperformed in 2016 mainly because of stronger fundamentals and an improving international environment, with GDP picking up speed, leading to positive earnings revisions for the first time in five years,

  3. Short Selling - Long-short hedge funds are ditching the shorts to focus on longs[more]

    From Bloomberg.com: What happens when you take the "short" out of a long-short trading strategy? Some hedge funds are about to find out. Equity long-short fund managers, the biggest category in hedge funds, hold the fewest bearish stock bets on record, data compiled by Credit Suisse Group AG s

  4. SWFs - China sovereign wealth fund CIC plans more U.S. investments[more]

    From Reuters.com: China Investment Corporation (CIC), the country's sovereign wealth fund, is looking to raise alternative investments in the United States due to low returns in public markets, its chairman said on Monday. CIC will boost its investments in private equity and hedge funds as wel

  5. Some hedge funds strong start in 2017 nice contrast to 2016[more]

    With the 2016 HSBC Hedge Weekly performance rankings in the books - a year in which the same leader-board entries pretty much dominated unchallenged throughout the year - comes a new leader board that is a hard-scrabble mix of hedge fund styles and categories. What is clear after but a few short wee