Ackman Presses Fannie
As Bill Ackman's Herbalife (HLF) short position reaches a boiling point, the Pershing Square head took the stage at the conference to detail why he believes Fannie Mae (FNMA) and Freddie Mac (FMCC) shares are undervalued.
Ultimately, Ackman ascribed an over $40 a share value to Fannie Mae shares, and said Pershing Square would be willing help finance an exit of the company from government conservatorship.
Ackman's biggest point was that the exit of Fannie and Freddie Mac might resemble a similar move pulled off by insurer AIG (AIG) in the years since the crisis. He also said he didn't believe it was in the interest of the government to wipe out the value of its Fannie Mae and Freddie holding.
A Safer Netflix Play
Philippe Laffont of tech and media-focused hedge fund Coatue Management, presented a case for why he believes Liberty Global (LBTYA) shares are undervalued. Laffont cited Netflix's expansion in Europe as likely to benefit Liberty Global's earnings, and raised the prospect that consolidation in the European cable and wireless industry would mirror a flurry of activity in the U.S.
Fundamentally, Laffont also said Liberty Global shares were undervalued, given the company's ability to generate free cash flow and use such funds to reduce its overall share count. Laffont said Liberty's free cash flow per share could grow at a 25% rate, and that the company could be worth in excess of $100 a share.