Tue, Jul 29, 2014
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. Opalesque Roundtable: Success in hedge fund marketing not linked to performance, but investor appetite[more]

    Komfie Manalo, Opalesque Asia: Success in marketing a fund is not linked to the performance, but to investor appetite, to the way you can market the fund, and to how much time you can spend to raise assets, said Antoine Rolland, the CEO of incubator and seeding firm

  2. Hedge fund manager Winton Capital making headway with long-only strategy[more]

    From PIonline.com: North American investors are helping Winton Capital Management Ltd. make progress — albeit slowly — toward its founder's goal of becoming a $100 billion company. The firm's ticket to quadrupling its assets under management is unlikely to be one of its scientifically designed manag

  3. Opalesque Radio: Now is a good time to buy protection cheaply in the options market[more]

    Benedicte Gravrand, Opalesque Geneva: Investors are showing an increased interest in risk parity funds and strategies, Opalesque reported last year. Risk parity strategies have the

  4. The Big Picture: Charlemagne Capital smoothes risk out of frontier market investing with portfolio approach[more]

    Benedicte Gravrand, Opalesque Geneva: Opalesque recently talked to one of the portfolio managers of the Oaks funds, which are emerging and frontier market hedge funds focusing on equity long/short with a directional approach. They are run by

  5. Winton’s low-cost equities fund tops $1bn for first time[more]

    From FT.com: Winton, the London-based hedge fund, has increased the assets in its low-cost equities fund to more than $1bn for the first time in a sign that traditional stock managers may come under increasing pressure from computer-driven rivals. Winton, which manages about $25bn in total ass