Fannie Mae Update--11/18/2013


A few weeks ago, I wrote a detailed report on Fannie Mae.  Since then the stock has appreciated dramatically.  I mentioned in the report that there was the potential for a few major hedge fund players to become involved in the Fannie Mae investment theme.  

Well, last week some news on that front was released.

Bill Ackman news:


Fairholme news:


I mention a specific security, not as a buy or sell recommendation, but simply as a way to re-iterate a point I made in the last newsletter to clients.  And that point was that, I believe this market has shifted from a risk-on/risk-off macro moving market to a stock picker's market.  Individual investments, in my opinion, will be taking the center stage away from big market centered moves in the coming quarters and years.  This is part of the grand "normalization" theme occurring within the markets.