My post today could be one word, Icahn! This is great news. The fact that Icahn has purchased such a large position will certainly entice even more big guns to enter. I find it very amusing that the government caused this news to break by the one question they asked Fairholme to answer in discovery. The government learned the hard way why you never ask a question you don’t know the answer to. I doubt the government inadvertently left this information out in the first submission. It is more than clear that they wanted the Icahn insider trading news to get fully covered all weekend before they were forced to break the news that Icahn is investing heavily in Fannie and Freddie. They are now resorting to Vladmir Putin style tactics to try and intimidate investors and activists from getting in their way. It is chilling that our own government is continuing to use Soviet/Russian style tactics in their effort to sweep private investors money into the US treasury. Carl Icahn and Bill Ackman have very different investment philosophies as evidenced by their Herbalife rivalry. The fact that they are both in Fannie and Freddie now speaks volumes. Without revealing specific details I have made it clear that large buyers were and continue to buy up our shares, I hope most of you reacted accordingly.
The first thirty pages of corrected appendix to the motion for a protective order is simply a re-submission of the three declarations. On page thirty-one we find the Plaintiffs’ First Set of Requests for Production, dated April 7, 2014. This is followed by the Defendant’s Response To Plaintiffs’ First Set of Requests for Production, dated May 2, 2014. This is a wealth of information, and I will take some time to analyze this in detail and consult with others as well. The final section Fairholme Funds, Inc. and the Fairholme Fund’s Answer to Defendant’s First Interrogatory, dated May 7, 2014 is where the government inadvertently let the cat out of the bag with the Icahn news. I have attached the new documents in yesterdays post. We anxiously await Fairholmes response to all of this. Fairholme will have to respond, and Judge Sweeney will need time to disseminate what is already a colossal amount of information before she can issue a judgement on this.
Keep the faith!