Bill Ackman Boosts Mortgage Giant Fannie, FreddieMortgage giants Fannie Mae and Freddie Mac has sold big stake in the company to Pershing Square Capital Management is an activist hedge fund founded and run by William Ackman.
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.Source: FINalternatives