Tue, Oct 25, 2016
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. M&A - U.S. hedge fund HarbourVest is shock winner in the £1.1bn SVG Capital takeover saga, Hedge fund Parvus shows hand, toppling William Hill merger deal[more]

    U.S. hedge fund HarbourVest is shock winner in the £1.1bn SVG Capital takeover saga From Thisismoney.co.uk: The fierce battle to buy Britain's biggest private equity group has come to an unexpected conclusion, with the original bidder walking away with the prize. SVG Capital has agreed

  2. Marc Lasry: Energy is still a phenomenal opportunity[more]

    From CNBC.com: Distressed debt specialist Marc Lasry said energy debt is still a "phenomenal opportunity" because investors can get "massively overpaid" for the risk they take on. There are "huge opportunities" in the energy sector especially in restructurings, the Avenue Capital Group CEO said Tues

  3. Opalesque Exclusive: Ex-SAC manager re-emerges with market neutral hedge fund[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: A manager re-emerged from the SAC battleground last year to launch his own hedge fund under the umbrella of New York-based investment firm Endicott Group.

  4. North America - Hedge-fund manager Kyle Bass says the U.S. is on track for stagflation, Billionaire hedge fund titans Dinan, Lasry on election, markets and best investment ideas[more]

    Hedge-fund manager Kyle Bass says the U.S. is on track for stagflation From Marketwatch.com: Kyle Bass, founder of Hayman Capital Management, on Wednesday warned that the U.S. is headed toward so-called stagflation. Stagflation is typically described as persistently high inflation and hi

  5. David Einhorn speaks on passive investing, Mylan, his cheapest stock, the Fed[more]

    From Forbes.com: Greenlight Capital hedge fund manager David Einhorn (Trades, Portfolio) joined nine other famed investors on Tuesday to talk about stocks at the annual Great Investors’ Best Ideas Investment Symposium in Dallas. Presenters at the annual conference typically pitch one or severa