Fannie Mae-No Politics (FNMA)

[kthomp19]

First, why didn't he buy prefs until 2017? He had only commons for about 3 years before that. If he was going to hedge, he should have done so from the start.

Second, that doesn't even answer the question: what is it that he's so afraid of, enough to explicitly state it in his 2017 annual report, and enough to buy so many prefs in 2018 that they are now 38% of his FnF portfolio? It has to be much worse for commons than Moelis, that's for sure.

Ackman recognizes the risk inherent in the commons relative to the prefs. So does Berkowitz, because he doesn't own any commons at all. Same for Paulson. Why am I one of the only ones here that does the same?