Bill Ackman, managing partner of Pershing Square Capital Management, discusses the benefits of short-selling, Goldman Sachs' fraud charges and more with CNBC.
Ackman is the central figure of the new book Confidence Game: How a Hedge Fund Manager Called Wall Street's Bluff
by Christine Richard. The book, according to Amazon.com, tells “the story of Bill Ackman's six-year campaign to warn that the $2.5 trillion bond insurance business was a catastrophe waiting to happen. Branded a fraud by the Wall Street Journal and the New York Times and investigated by Eliot Spitzer and the Securities and Exchange Commission, Ackman later made his investors more than $1 billion when bond insurers kicked off the collapse of the credit markets.”
Bill Ackman shorted bond insurer MBIA Inc. (MBI, Financial), a company deviated from its traditional bond insurance business and ventured into insuring CDO’s and MBS’s. When the real estate collapsed, so did the stock price of MBI. Ackman profited from his short positions in MBI.
In the interview, Ackman also shone light on the Goldman Sachs Fraud case. He does not see anything wrong in Goldman’s not disclosing who was betting against the CDO that it was putting together. As a matter of fact, he thinks it is unethical for Goldman to disclose that kind of information:
In this segment, Ackman discusses the financial regulation reform. He is in favor of the reform and confident a better bill will come out of the process.
In this segment, Ackman discusses his successful story of investing in General Growth Properties and Target:
Ackman is the central figure of the new book Confidence Game: How a Hedge Fund Manager Called Wall Street's Bluff
by Christine Richard. The book, according to Amazon.com, tells “the story of Bill Ackman's six-year campaign to warn that the $2.5 trillion bond insurance business was a catastrophe waiting to happen. Branded a fraud by the Wall Street Journal and the New York Times and investigated by Eliot Spitzer and the Securities and Exchange Commission, Ackman later made his investors more than $1 billion when bond insurers kicked off the collapse of the credit markets.”Bill Ackman shorted bond insurer MBIA Inc. (MBI, Financial), a company deviated from its traditional bond insurance business and ventured into insuring CDO’s and MBS’s. When the real estate collapsed, so did the stock price of MBI. Ackman profited from his short positions in MBI.
In the interview, Ackman also shone light on the Goldman Sachs Fraud case. He does not see anything wrong in Goldman’s not disclosing who was betting against the CDO that it was putting together. As a matter of fact, he thinks it is unethical for Goldman to disclose that kind of information:
In this segment, Ackman discusses the financial regulation reform. He is in favor of the reform and confident a better bill will come out of the process.
In this segment, Ackman discusses his successful story of investing in General Growth Properties and Target:
