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Komfie Manalo, Opalesque Asia:

Activist hedge fund manager Bill Ackman of Pershing Square is confident with the shares of mortgage giants Fannie Mae and Freddie Mac, buying more shares while others are unloading.

According to Valuewalk, Ackman told his investors that he foresees the Federal court would reverse its September decision that slammed shares in Fannie Mae and Freddie Mac. Several hedge funds including Fairholme Capital Management, and Perry Capital challenged the U.S. government's 2012 decision to sweep nearly all of Fannie and Freddie's profits to the U.S. Treasury rather than collect set dividend payments. A U.S. District Judge on Sept. 30 to threw out the lawsuit brought by the hedge funds.

Ackman told his investors, "We believe the U.S. District Court ruling will ultimately be overturned on appeal, and similar lawsuits in other jurisdictions will yield a more favorable outcome. The adverse court ruling resulted in a large decline in Fannie and Freddie's respective share prices, which we used as an opportunity to purchase additional shares in both companies. We voluntarily withdrew our case in the U.S. District Court and are devoting our legal resources to reversing the Federal Government's improper seizure of common shareholders' property by prosecuting our Constitutional takings claims in the U.S. Court o......................

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