While Bill Ackman gave another incredibly long presentation on his Herbalife short, shares of two of his big investments tanked.
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 $US2 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 $US2 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.