Fannie Mae-No Politics (FNMA)

[chessmaster315]

Several years ago, Ackman made a decision "not" to disclose his buys/sells of FNMA. He need not do so as this is an otcbb stock.

Therefore, we would not know whether or not Ackman bot/sold fnma shares or preferreds until his annual statments to his shareholders of the hedge fund.

However, Ackman has/continues with his long term committment to fannie because:
1. He considers it a "home run" and he could still hit a homer even tho he "walked" a few times. That is, nobody hits a home run every time they go to bat. He recognized that previously we had negative court outcomes.

2. He made massive committments to fnma/fnmas. For one thing, this billionaire is mostly responsible for hiring the prestige law firm representing shareholders, Cooper and Kirk. This law firm has a great reputation at the US Supreme court..this is not a small time divorce lawyer. Its a huge prestige law firm, which charges clients millions to represent them in "high value" cases, just like fnma. I dont think he would commit millions and millions of dollars, plus his reputation, only to "bail" on fnma. He knew this well going in to fnma.

3. Ackman's hedge funds have gotten beat up..he had many opportunities to bail on fannie mae over the past 5 plus years, but he showed his resolve to hang in there. This will be a World Series winning grand slam for his hedge fund, as he predicts fannie mae could/should be worth in excess of $40 per common share AGAIN, after the cship is over and the company, as well as the profits, are returned to its rightful owners, the shareholders. Remember, fannie mae used to be the "widows" stock. It was for elderly widows to invest their pension funds in a safe, reliable dividend stock which was considered largely immune for long term holders to wall street sharks.