Sohn investors: Keep GSEs alive
The U.S. Senate may have tabled Johnson-Crapo for now, but a growing number of investors and hedge fund executives think it’s time to put a fork in it, it’s done, and clear the way for keeping the GSEs alive.
Influential activist hedge fund manager William Ackman has joined a growing number of distressed-equity investors, including Bruce Berkowitz's Fairholme Capital Management, Richard Perry's Perry Capital and John Paulson's Paulson & Co., in betting on the revival of Fannie Mae and Freddie Mac.
Ackman, speaking at The Sohn Investment Conference, one of the most highly anticipated annual gatherings of hedge-fund managers, said on Monday that Fannie and Freddie have "enabled a very strong housing market apart from the bubble and the bubble bursting." Shares of Fannie Mae and Freddie Mac jumped following the remarks by Ackman, who is the chief executive of Pershing Square Capital Management. Shares of Freddie Mac were up more than 6%, and shares of Fannie Mae were up 3%.