Fannie Mae-No Politics (FNMA)

[big-yank]

I alter my investment theses when conditions change and a new conclusion becomes appropriate. 18 months ago I changed my position on Fannie Mae preferred stock when Jacobs, Hindes filed their Delaware suit and, subsequently, a whole new round of litigations ensued that indicated the brink of insolvency in 2017 could be breached. I bought a significant position in FNMAS shares, adding a lot more, since. That investment has well more than doubled, to date.

In November, I carefully considered the Trump election victory and the nomination of Mnuchin as Treasury Secretary. I opened major positions in both FNMA and FMCC common shares because my analysis included the reality that release would be mandatory under a GOP D.C. triumvirate.

If circumstances warrant, I will change my positions again, in the future. If that happens, I will post my reasons... just as I did when I decided to buy into my current holdings.