Nice guy, that Bill Ackman.
Speaking at a value investor conference in New York, hedge fund hell raiser William Ackman pummelled the bond insurer industry and predicted that MBIA was headed for catastrophe.
After excoriating the sector, Ackman the Activist founder of Pershing Capital, showed his “nice side.” Having already made a boat load of money on his short position on bond insurers, Ackman made a pledge.
From now on, the profits he makes from the decline in bond insurers will be donated to his charitable foundation, he said. Ackman is of course aware that a meltdown in bond insurers would hurt mom and pop, as the insurers back a big chunk of municipal bonds. But he’s pretty sure that the insurance subsidiaries will be saved, in the event of a blow up, while the holding companies are what he expects to go under.
When an audience member asked him about his investment in Borders, Ackman gave the following explanation for his angle: