Wed, Nov 25, 2015
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. Other Voices: Hedge fund marketing and the selling cycle[more]

    By Bruce Frumerman. How long is the selling cycle now? That’s a question my financial communications and sales marketing consulting firm has been asked on a regular basis by hedge fund firm owners and sales people, ever since we opened the doors to our firm in 1987 pre-crash. Wa

  2. Investing - BlackRock targets ETF investors with flexible currency hedging, Nelson Peltz bets on General Electric Company and Mondelez International, Apple plummets to 4th place among hedge holdings, from No. 1, Top Q3 equity purchases and sales of top 50 hedge funds[more]

    BlackRock targets ETF investors with flexible currency hedging From BlackRock Inc., the world’s largest asset manager, is changing course on exchange-traded funds that protect against currency volatility. After stressing the easy switch between hedged and unhedged ET

  3. Chicago-based Achievement A. M. is shutting down hedge fund following losses[more]

    Komfie Manalo, Opalesque Asia for New Managers: Achievement Asset Management, a Chicago-based hedge fund firm, has announced it is closing down its hedge fund operation following losses on energy market bets this ye

  4. Lyxor Hedge Fund Index up 0.1% (+0.4% YTD) as global macro and CTAs outperform[more]

    Komfie Manalo, Opalesque Asia for New Managers: Global macro and CTAs outperformed the hedge fund space and delivered positive returns last week amidst difficult market conditions, with the Lyxor Hedge Fund Index up

  5. BlackRock is shutting down its Global Ascent macro fund[more]

    Komfie Manalo, Opalesque Asia: BlackRock, the world’s largest asset manager, has announced plans to shut down a macro fund, Global Ascent Fund, because of "headwinds facing the industry". The hedge fund, which makes bets on stock, bond and currency markets, will return money to investors. Ac