Hedge Funds Hit With Right Hook on Fannie-Freddie Ruling
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The collapse of securities tied to Fannie Mae and Freddie Mac punished some of Wall Street’s best known money managers, with star investor Bruce Berkowitz’s main mutual fund losing more than $600 million.
The value of the $8 billion Fairholme Fund’s stakes in preferred and common shares of the U.S. mortgage-finance firms slid to less than $550 million today, from $1.2 billion at yesterday’s close, based on holdings disclosed as of May 31.