Pershing sees deepening troubles for MBIA, Ambac
NEW YORK, Nov 28 (Reuters) - Activist investor William Ackman is expected to lay out on Wednesday why he is still shorting bond insurers MBIA and Ambac even after a dramatic plunge in their shares this year, according to sources.
Ackman plans to go into detail at a conference in New York on why his fund is betting on an even bigger drop in the companies' stocks in the near term, sources familiar with the matter told Reuters.
Ackman, who runs activist hedge fund Pershing Square Capital Management LP, is expected to outline his firm's thesis that the bond insurers are exposed to a broad range of risky securities beyond collateralized debt obligations (CDOs).
Ackman has publicly stated he holds a short position in MBIA and Ambac, meaning he is betting on their shares to drop.
The well-known activist investor, responsible for shaking up companies such as hamburger chain McDonald's (MCD.N) and payment processor Ceridian, will be speaking at the annual New York Value Investing Congress beginning at 9:40 a.m. EST. (Additional reporting by Dane Hamilton; Editing by Gary Hill)
