Fannie Mae / Freddie Mac Preferred Shares Still Driving Top Hedge Fund

0
Fannie Mae / Freddie Mac Preferred Shares Still Driving Top Hedge Fund
By User:AgnosticPreachersKid (Own work) [<a href="http://creativecommons.org/licenses/by-sa/3.0">CC BY-SA 3.0</a>], <a href="https://commons.wikimedia.org/wiki/File%3AFannie_Mae_Headquarters.JPG">via Wikimedia Commons</a>

The latest “Hedge Weekly” report was released on Wednesday, and it shows that Muirfield GSE Partners was again at the top of the list. The fund’s return as of the end of August was 70.02%. Fannie Mae and Freddie Mac preferred shares continued to climb over the last week, boosting Muirfield’s performance again.

Muirfield’s thesis for Fannie/ Freddie preferred shares

Get The Full Warren Buffett Series in PDF

Get the entire 10-part series on Warren Buffett in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues

Q2 hedge fund letters, conference, scoops etc

Muirfield's thesis for Fannie Mae and Freddie Mac preferred shares is well-documented. The fund's management said earlier this year that they expected to triple their money on preferred shares of the government-sponsored enterprises. They estimated that the shares are worth $25, which still leaves plenty of room for upside if they are correct.

Sohn Investment Conference 2021 Coverage: Octahedron Capital, Glenernie Capital, David Einhorn and more

2021 Sohn Investment ConferenceThe following is our rough coverage of the 2021 Sohn Investment Conference, which is being held virtually and features Brad Gerstner, Bill Gurley, Octahedron's Ram Parameswaran, Glenernie's Andrew Nunneley, and Lux's Josh Wolfe. Q1 2021 hedge fund letters, conferences and more Keep checking back as we will be updating this post as the conference goes Read More


The overall thesis for the GSEs' preferred shares hinges on both companies exiting conservatorship and on the decision in a number of lawsuits filed over the dividends. Reputed bank analyst Dick Bove has said he believes the plaintiffs are in the right on those lawsuits, and several hedge funds have continued to bet on a positive outcome.

Analysts expect the Trump administration to unveil its plan to bring Fannie Mae and Freddie Mac out of conservatorship in the next few days. The U.S. Senate Banking Committee said earlier this week that it has planned a hearing on the matter for Sept. 10, and analysts widely saw that as a sign that the report would arrive by Friday.

Other top and bottom funds

After Muirfield's Fannie Mae and Freddie Mac preferred shares boost, the other top 10 funds according to "Hedge Weekly" are:

  1. Quantedge Global
  2. Lynx Bermuda
  3. Cantab Capital Partners Quantitative Fund
  4. Pershing Square Intl
  5. BCM Weston
  6. Golden China Fund
  7. Graham Global Investment Fund
  8. Lucerne Capital
  9. Pelham Global

The bottom 10 funds over the last week are, from the lowest up:

  1. Finisterre Global Opportunity Fund
  2. Odey European
  3. Bluemountain Credit Alternatives Fund
  4. Cassiopeia Fund
  5. PIMCO Global Credit Opportunity Fund
  6. MLM Macro Peak Partnersr Offsh
  7. Westfield Fund
  8. IPM Systematic Macro Fund
  9. Cassiopeia UCITS Fund
  10. Numen Credit Opportunities

This article first appeared on ValueWalk Premium

No posts to display