While Ackman Was Busy Slamming Herbalife, Two Of His Other Big Investments Crashed
Shares of Fannie and Freddie collapsed about 30% and 26%, respectively, on Tuesday following news of a bi-partisan plan to reform the government-owned mortgage financiers.
Ackman is the largest hedge fund shareholder in Fannie Mae (FNMA) and Freddie Mac (FMCC).
According to data compiled by Bloomberg, Ackman's Pershing Square last held 115,569,796 shares (9.98%) of Fannie Mae and 63,505,693 shares (9.77%) of Freddie Mac.
To be clear, Ackman isn't in the red on this investment.
He likely got in somewhere in the $2 range.
Pershing Square filed 13-Ds disclosing these holdings on November 15, 2013. Hedge funds don't have to file 13-Ds until several days after they purchase the stock. Looking back about ten days before his 13-Ds, the stocks were both in the $2 range.
On Tuesday afternoon, Ackman gave a presentation on Herbalife's China business practices that lasted about three hours. During this time, Fannie and Freddie nose-dived. Ackman didn't mention it on the call. He did, however, take a 1 minute, ten second "men's room break." So maybe he saw it then.
