Bill Miller from Legg Mason, Inc. [[LM]] is, owing more than 79 million shares of Freddie Mac [[FRE]] .
If the Government cheese makers decide to nationalize Fannie and Freddie, a whole mess of low IQ money managers, who erroneously control billions of dollars worth of investors money, will be annihilated.
Here are some notable holders of Fannie Mae [[FNM]] , in dollars:
Fidelity: 476 million
Citigroup Inc. [[C]] – 376 million
Barclays PLC (ADR) [[BCS]] – 344 million
Merrill Lynch & Co., Inc. [[MER]] – 329 million
State Street Corporation [[STT]] – 274 million
Pzena Investment Management, Inc. [[PZN]] – 170 million
T. Rowe Price Group, Inc. [[TROW]] – 138 million
Janus Capital Group Inc. [[JNS]] – 76 million
Here are some notable holders of Freddie Mac [[FRE]] , in dollars:
Legg Mason, Inc. [[LM]] – 400 million
Pzena Investment Management, Inc. [[PZN]] – 195 million
Citigroup Inc. [[C]] – 169 million
Barclays PLC (ADR) [[BCS]] 155 million
Fidelity- 130 million
Morgan Stanley [[MS]] – 125 million
State Street Corporation [[STT]] – 125 million
Here are some notable holders of SLM Corporation [[SLM]] , in dollars:
Barclays PLC (ADR) [[BCS]] – 317 million
Fidelity- 330 million
T. Rowe Price Group, Inc. [[TROW]] – 290 million
Goldman Sachs Group, Inc. [[GS]] – 246 million
Aside from the above names, Dodge and Cox, Lord Abbett and a variety of mutual fund companies have massive exposure to FNM/FRE/SLM. What stands out, in my opinion, is little ol’ Pzena Asset Management, with their 650 million market cap, coupled with their obscene exposure to the financials. I can’t help but think, they are in serious trouble here.
So, I delved into their holdings and dug up some interesting, yet startling facts.
Those people are out of their minds. Aside from FNM/FRE, they have exposure all over the place. Here is a small list of stocks on their sheets, in dollars:
C– 776 million
Alcatel-Lucent (ADR) [[ALU]] – 688 million
Capital One Financial Corp. [[COF]] – 683 million
The Allstate Corporation [[ALL]] – 555 million
The Home Depot, Inc. [[HD]] – 548 million
Bank of America Corporation [[BAC]] – 503 million
Wachovia Corporation [[WB]] – 392 million
MS– 321 million
J.C. Penney Company, Inc. [[JCP]] – 298 million
Comerica Incorporated [[CMA]] 234 million
Lehman Brothers Holdings Inc. [[LEH]] – 187 million
Level 3 Communications, Inc. [[LVLT]] – 173 million
JPMorgan Chase & Co. [[JPM]] – 152 million
Conclusion: The managers from PZN are wildly insane, holding so many risky investments. I can understand taking down a few banks, in order to bet on a recovery. However, these guys have bet the franchise on it.
Essentially, if you want a super charged gamble on the banks, get long PZN. My guess, investors will continue to pull money out of their funds, effectively wiping them off the map—providing the financials continue to struggle.
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