Tue, May 22, 2018
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

William Ackman says Fannie, Freddie Mac could be Ten Bagger

Monday, February 24, 2014

Komfie Manalo, Opalesque Asia:

Activist investor William Ackman is confident that his big gamble on Fannie Mae and Freddie Mac will deliver him huge returns.

A report by The Journal said Ackman believes the common shares of Fannie and Freddie could be worth more than 10 times their current value over the next several years. Ten bagger is an investment term coined by Peter Lynch in his book "One Up On Wall Street" and refers to an investment worth ten times its original purchase price.

Ackman is placing his confidence on the belief the U.S. Supreme Court would provide the legal victory for shareholders of the mortgage-finance giants in their lawsuits against the U.S. Fed’s bailout agreement with the two firms.

People close to Ackman said the hedge fund manager believes the High Court would side with the shareholders if the suit reaches the court. If the shareholders win their case, the common shares of Freddie and Fannie will be worth more than 10 to 15 times their current value, Ackman reportedly told the people who heard Ackman’s recent remarks.

In November last year, Ackman’s Pershing Square Capital Management LP bought a 9.98% stake in the common shares of Fannie Mae that aren’t owned by the U.S. government, and ......................

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. News Briefs - Warren Buffett: Target date funds aren't the way to go, Cambridge Analytica could be reborn under a different name[more]

    Warren Buffett: Target date funds aren't the way to go Planning for retirement can be complicated and stressful. This is why target date funds - funds that are managed based on when you expect to retire - are so attractive. Over time, the balance of stocks, bonds and cash evolve automati

  2. Investing - Hedge funds hike Smurfit Kappa positions amid takeover deal hopes, Hedge fund IBV Capital digs deep to unlock long-term value in a competitive market, Eisman of 'The Big Short' fame recommends shorting Deutsche Bank[more]

    Hedge funds hike Smurfit Kappa positions amid takeover deal hopes From Irishtimes.com: Two US hedge funds, Davidson Kempner and York Capital, have accumulated a combined 4.74 per cent interest in cardboard box maker Smurfit Kappa using financial derivatives. It comes as many investors cl

  3. Foundations of hedge fund managers gave big to controversial donor-advised funds[more]

    In the world of philanthropy and tax-deductible charitable giving, the explosion of donor-advised funds has touched off intense debate. Now, there is evidence that the DAF boom is being further fuelled by hedge fund foundation money. Four of the top five foundations that gave the most to large do

  4. Study: For hedge funds, smaller is better[more]

    From Institutionalinvestor.com: The smaller the hedge fund is, the better its performance is likely to be, according to a new study. The study - "Size, Age, and the Performance Life Cycle of Hedge Funds," released April 26 - sought to determine whether a hedge fund's size and age had any effect on i

  5. Hedge fund returns rose in April for first gain since January[more]

    From Bloomberg.com: Bloomberg Hedge Fund Database shows returns flat this year - Currency strategies had the biggest monthly gain at 13% Hedge fund returns increased 0.78 percent in April, reversing two consecutive monthly declines. The swing of 134 basis points was driven by gains in all seven