Tue, Sep 23, 2014
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. SEC charges 19 investment firms and one trader for breach of Rule 105[more]

    Benedicte Gravrand, Opalesque Geneva: The Securities and Exchange Commission (SEC) started a push to enhance the enforcement of Rule 105 of Regulation M last year to uncover hedge funds and private equity firms that have illegally participated in an offering of a stock after short selling it duri

  2. Fund managers, bullish on Europe, anticipate monetary policy separation of Fed and ECB[more]

    Komfie Manalo, Opalesque Asia: At least 202 fund managers with $556bn of assets under management said that while the European Central Bank (ECB) has eased its monetary policy that sent sentiments towards Europe to pick up, the Fed is expected to hike its rate in the spring of 2015. Investor

  3. Institutions - North Carolina workers call on state pension to dump up to $6bn in hedge funds, UK pension fund criticizes hedge fund fees[more]

    North Carolina workers call on state pension to dump up to $6bn in hedge funds From Forbes.com: The State Employees Association of North Carolina this afternoon called on state Treasurer Janet Cowell to withdraw all investments in hedge funds, which appear to amount to approximately $6 b

  4. News Briefs - Limited partners of investment managers may be subject to self-employment taxes, Just one week left until NYC's Rocktoberfest[more]

    Limited partners of investment managers may be subject to self-employment taxes On September 5, 2014, the Internal Revenue Service (“IRS”) issued Chief Counsel Advice 201436049, concluding that members of an investment manager were subject to self-employment taxes with respect to their e

  5. Institutions - Adviser's faith in hedge funds unshaken by CalPERS' move Advisers weigh in on CalPERS’ decision, Gina Raimondo sees no reason to follow California’s lead, exit hedge funds, Danish pension funds step up 'alternative investments'[more]

    Adviser's faith in hedge funds unshaken by CalPERS' move From WSJ.com: Financial advisers who use hedge funds in their clients' portfolios say they aren't rethinking that approach after a huge California pension fund announced plans to exit the hedge-fund market. The decision by the Cali