Pershing Square Boosts Fannie, Freddie Bets

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.


In Depth

Q&A: Old Hill's Stone On Private Debt, P2P And Credit Bubbles

Jun 6 2017 | 7:52pm ET

While institutional capital continues to flow into the broader private debt sector...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Steinbrugge: Asia-Focused Hedge Funds Offer Great Opportunities

Jun 23 2017 | 3:33pm ET

Emerging market strategies have outperformed their developed-market peers for five...

 
Error

From the current issue of