Thu, Feb 11, 2016
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. Credit Suisse cherry picks hedge fund ideas[more]

    From FT.com: Credit Suisse Asset Management plans to cherry pick profitable concepts from hedge funds with the launch in Europe of a “best ideas” strategy. The investment arm of the Swiss bank said the strategy will separate it from other funds blighted by “overcrowding problems”. It comes at a time

  2. Investing - Hedge funds bet on risks in U.S. blue-chip debt, Hedge funds bets against bank credit risk paying off, Tiger Global still likes Internet names, gets pointers from Jeter[more]

    Hedge funds bet on risks in U.S. blue-chip debt From WSJ.com: Hedge funds are betting the next bond sector to crack will be the $4.5 trillion market for the safest U.S. corporate debt. New York’s Perry Capital has placed a $1 billion wager against investment-grade bonds issued by 10 comp

  3. Short Selling - Hedge fund manager Kyle Bass is shorting real estate—again, Top US hedge fund has €80m short position in Paddy Power Betfair[more]

    Hedge fund manager Kyle Bass is shorting real estate—again From Fortune.com: He also predicted the mortgage crisis in 2008. Hedge fund manager Kyle Bass, who runs Dallas-based Hayman Capital, tanked the stock of a little-known real estate financier Friday by revealing that he is shorting

  4. Investing - Real estate secondaries sole 'bright spot' in 2015, As hedge funds stumble, one firm prepares to buy illiquid stakes[more]

    Real estate secondaries sole 'bright spot' in 2015 From IPE.com: The secondary market for property was the sole “bright spot” over the course of 2015, as hedge fund secondaries saw deals fall by two-thirds, according to a wide-ranging survey of the market. Setter Capital said 2015 saw th

  5. Opalesque Exclusive: Directors want to be considered trusted partners by new manager[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: A hedge fund director provides her perspective on emerging hedge fund managers. She will happily work with those who have set themselves up for future growth, s