Fannie Mae Preferred S (FNMAS)

[NobodyFromNowhere]

Short SHLD to hedge Berkowitz Liquidation Risk

Berk's biggest position is the biggest dog in the market. Just losing billions each year. It was supposed to be a real estate play, but they have done little to sell RE despite low interest rates.

Fairholme may liquidate soon, so I would short an equal dollar amount of SHLD with your long FNMAS. As long as it isn't too big a position, don't worry about it.