Fannie Mae-No Politics (FNMA)

[JOoa0ky]

He hedged his GGP position with preferreds as well...
The all common crew here think that they can outdo Ackman.

3) At today's prices, his junior pref holdings comprise about 30% of his overall FnF portfolio (~11M shares of FNMAS/FMCKJ, ~180M shares of FNMA/FMCC).
4) One reason he bought the juniors is that "it hedges our risk of a restructuring that disproportionately benefits the preferred versus the common shares" (page 15). That means he both knows that the juniors can outperform the commons, and that he won't be able to do anything about it.