Martin Whitman versus Bill Ackman

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Martin Whitman versus Bill Ackman

Martin Whitman Bill Ackman

Martin Whitman bought $326 million of MBIA's stock and surplus notes since December and attacks Ackman:

MBIA is being victimized by an apparently well organized bear raid headed by William Ackman ("Ackman") of Pershing Square Capital Management. While the bear raiders have been helpful to Third Avenue, in making it easier to acquire MBIA Common at depressed prices, the bear raiders might have the ability to adversely affect the going concern attributes of MBIA, given the possible capriciousness of Rating Agencies and regulators.

Bill Ackman is shorting shares of MBI massively.

Here is video and here is his presentation.

PS:Do you remember what said Eric Sprott about MBI .(MBI is a zero)

By pelcmarek at 2008-03-08 06:28 | Stocks | pelcmarek's blog

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Ackman

http://valueinvestingtv.com/ here 2 more videos

By pelcmarek at Sat, 2008-03-08 08:08 | login or register to post comments

Whitman is an idiot

There's really no reason to go long on the monolines at this stage, even if you believe one of the long string of different buyout/bailout rumours irresponsibly and unethically disseminated by the media to help hedge funds pump and dump futures (it seems like there is a new rumor every couple of weeks).

Ackman and Co. prepared a very cogent dossier (November?) explaining the case against the bond insurers. The business model on which the monolines operated required the persistence of historically low default rates. It's amazing that the Wall Street cronies have not downgraded these suckers yet (at least the debt is trading distressed).

The only bond insurer that I like is Berkshire's :) I saw him on CNBC last week explaining that he was getting 3x the primary premium being charged by MBI/ABK for his re-insurance.

By smtkr at Sat, 2008-03-08 08:40 | login or register to post comments

Sorry Marty

I think this time you are wrong

Nicely explained: another video and letter

By pelcmarek at Sat, 2008-03-08 10:00 | login or register to post comments

I think both of these guys

I think both of these guys are going to make money on this stock.

It's been funny watching both of them while this has been going on.

- Vooch

By Vooch at Sat, 2008-03-08 12:37 | login or register to post comments

Monolines PR

I've been watching the monoline crisis/comedy for the last few months. The role of the ratings agencies in all of this is quite amusing. I find it mind-boggling that anybody even listens to them anymore. Why is this rubber stamp so important? I know that many managers have to game the system and have the stamp to invest, but the ratings agencies are biased to the point that they are little more that an extension of the PR Department for the issuing firm.

This article in the NY Times tells me that Fitch just got fired by MBIA as a cheerleader. If Moody's and S&P start acting responsibly will they also get fired? Who will step up and take their place? Will, heaven forbid, investment funds have to do their own research? I see an upcoming boom for credit analysts. Maybe CFA hopefuls should focus on the credit market rather than equities.

Just a thought.

SunTzu

By Suntzu at Sat, 2008-03-08 13:19 | login or register to post comments