A profile on CNBC on Ackman and his trades in MBIA (MBI) and Ambac (ABK)
Also discussed in his positions in Borders (BGP), Target (TGT), Sears (SHLD) and Wendy’s (WEN).
Disclosure (“none” means no position):Long SHLD
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A profile on CNBC on Ackman and his trades in MBIA (MBI) and Ambac (ABK)
Also discussed in his positions in Borders (BGP), Target (TGT), Sears (SHLD) and Wendy’s (WEN).
Disclosure (“none” means no position):Long SHLD
8 replies on “Ackman on Bond Insurers”
Do you know anything about that Alexander Stores investment, Todd?
David
Alexander’s Inc. (ALX)
Here is an article about a department store chain established in 1928 that filed for Chapter 11 bankruptcy protection in 1992 and emerged as a realestate play in 1993.
Interesting facts:
(1) Bill Ackman (according to the New York Times)
“paid half his tuition as a student by snapping up shares in Alexander’s Inc. at $8.50, days before the retailer went bankrupt”. Stock eventually went up as high as $456.
(2) Steven Roth from Vornado Realty Trust (VNO), was also involved in the bankruptcy process. Vornado, was Two Guys department stores, before transforming into a REIT.
(3) Donald Trump was also involved.
Thought that you might find these crumbs useful in coming up with an insightful possible worst-case scenerio for Sears Holdings.
wow,
great job vlado…. i am impressed
Thanks Todd. It only appears to be a quick turn around, because I was already in the process of researching the comment by the CNBC reporter.
MBIA to Call on Congress to Rein in Ackman
New York Times, 02/14/2008
In written testimony for a subcommittee of the House Committee on Financial Services, MBIA said that short sellers like Mr. Ackman, founder of the hedge fund Pershing Square Capital Management, have worked hard to undermine market confidence in the bond insurers.
MBIA vs. Shorts: They’re Kidding, Right?
Herb Greenberg, 02/13/2008
Thank you for the links.
Another question: Isn’t it a big risk for Ackman and short sellers in general to assume that the bond insurer’s will not get bailed out by the government?
dave,
it is the holding companies he is short. any bailout (there will not be one) would kill the holding companies