A largely unrevealed similarity between AIG, Fannie Mae/Freddie Mac...
Much discussion has taken place concerning the conservator ships of AIG and the Twins, their bailouts, warrants, recap, etc. I would like to introduce when additional consideration as a confidence booster for those considering an investment here. This is weighing heavily on my own decision to reopen a position.
I decided to take a look into the history of major share acquisitions for AIG and FnF in the post-conservatorship years. I discovered a very interesting fact. The largest share purchaser of AIG, at a time where most analysts were predicting doom for them was: Bruce Berkowitz. He took a huge, quite contrarian position on preferred stocks and AIG bonds when hardly anyone would touch them at severely distressed market prices. And who did the same thing here? The same Bruce Berkowitz, except this time opting for a huge stake in preferred stocks but an additional, substantial stake in common shares, as well.
Berkowitz made an absolute KILLING on AIG. And he remains steadfastly confident that FnF will pay off in a major way.
So I read all this horseplay stuff about who's better, common or JPS and that Berko bought commons in case the payoff might be superior. But here's another interesting "connection" that surfaces in a deep dive on investors. Our largest common shareholder happens to be William Ackman. Everybody knows that. But do people know that Ackman and Berkowitz share an interesting relationship as the foundational benefactors for the Center for Jewish History where they combined to fund or help fund raise most all the capital for this massive chronicler of their shared Jewish faith? These guys believe in more than just Fannie Mae together. They know each other well. And neither one has shed shares here, despite 12 years of conservatorship and fund purchases holding their cash from 2012-2014.
Then there is yet another "coincidence" in their huge, tandem investment in General Growth Properties that was one of the biggest paydays in property history following a financial restructuring.
If these guys have faith, I have some too. Will have more to say, soon.
GLTA.
