Thursday, 24 July 2014
Last updated 12 hours ago
Apr 1 2014 | 1:41pm ET
Pershing Square Capital Management took a bath last month on its big stakes in mortgage giants Fannie Mae and Freddie Mac. Rather than cutting its substantial losses, however, the hedge fund is taking the swoon as an opportunity—to increase its investment.
Pershing Square’s stake in the two companies has grown to more than 11%, from about 9.8% each.
Fannie and Freddie shares fell sharply last month after a bipartisan plan to wind the two companies down and replace them with a new system of federally-insured mortgage securities that would saddle investors with more losses. Pershing Square’s losses totaled some $300 million.
Despite that, Pershing Square founder William Ackman believes that the likelihood that Fannie and Freddie will disappear is shrinking.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…