Fannie Mae (FNMA)

[955]

No announced changes by Ackman in F&F position.

The companies in our portfolio that have suffered the largest peak-to-trough declines are
Valeant, Platform, Nomad, and Fannie and Freddie. The inherent relative risk of their
underlying businesses and their more leveraged capital structures partially explain their greater
declines in market value as markets moved to a “risk off” mentality. But their massive declines
in value, in our view substantially more than can be accounted for due to fundamental issues in
their respective businesses, cannot, we believe, be attributed to these factors. Importantly, none
of these companies is in any of the important market indexes. Their shareholder bases are,
therefore, largely comprised of hedge funds and other active managers, which we believe has
contributed to their underperformance.

New Ackman note... http://assets.pershingsquareholdings.com/2014/09/Pershing-Square-2015-Annual-Letter-PSH-January-26-2016.pdf