Fannie Mae (FNMA)

[10bambam]

Tracking Bill Ackman's Pershing Square Portfolio - Q3 2019 Update (excerpt)

Dec. 20, 2019 2:46 AMPershing Square Holdings, Ltd. (PSHZF)ADP, BRK.A, BRK.B




Fannie Mae (OTCQB:FNMA) and Freddie Mac (OTCQB:FMCC) are other long positions in the partnership - the holdings were disclosed in 13D filings on November 15, 2013, - as they are not 13F securities, they are not listed in the 13F report. Ackman held just under 10% of the outstanding shares of both these businesses - 115.57M shares of FNMA at a cost basis of $2.29 and 63.5M shares of FMCC at a cost basis of $2.14. The combined investment outlay was ~$400M. FNMA and FMCC currently trade at $3.32 and $3.11 per share respectively. In March 2018, Pershing Square said its Fannie/Freddie pfds now amount to 21% of the total investment in the two GSEs. Pershing Square said it is a hedge in case the resolution favors pfds more than the common. As of its Q3 2019 conference call, it still believed the risk-reward for the Common is more attractive than the Preferred in almost every case.

https://seekingalpha.com/amp/article/4313487-tracking-bill-ackmans-pershing-square-portfolio-q2-2019-update