Bill Ackman, the activist investor best known for his scorched-earth campaign against MBIA and Ambac, has trained his sights on yet another municipal bond insurer: Financial Security Assurance.
Ackman told a crowd of about 100 hedge fund managers in New York Wednesday evening that, like MBIA (MBI, Financial) and Ambac (ABK, Financial), FSA is an "example of what happens when you start with a low-risk business, then add more risk to get higher returns. A company will keep doing that until it does something stupid." His remarks were delivered following a panel discussion on the convergence of private equity, real estate funds and hedge funds that was hosted by the law firm Jones Day.
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Ackman told a crowd of about 100 hedge fund managers in New York Wednesday evening that, like MBIA (MBI, Financial) and Ambac (ABK, Financial), FSA is an "example of what happens when you start with a low-risk business, then add more risk to get higher returns. A company will keep doing that until it does something stupid." His remarks were delivered following a panel discussion on the convergence of private equity, real estate funds and hedge funds that was hosted by the law firm Jones Day.
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