Beaten-down American Capital Mortgage (MTGE) sees a big buy, with Pine River Capital (they run...


Beaten-down American Capital Mortgage (MTGE) sees a big buy, with Pine River Capital (they run TWO Harbors) reporting the addition of nearly 4.4M shares to its previous 1M share stake. The stock's off nearly 40% since an ugly Q1 earnings report in early May (along with sister-company AGNC) was compounded by the fast rise in interest rates since.

Comments (6)
  • bornskeptic
    , contributor
    Comments (19) | Send Message
     
    Live by leverage, die by leverage. The Fed's action was not unexpected and the vaunted Mr, Kain supposedly hedged, but the stock price action leads me to believe that it was not very effective. Does Pine River know something that the rest of us do not?
    9 Jul 2013, 01:38 PM Reply Like
  • PendragonY
    , contributor
    Comments (11173) | Send Message
     
    Stock price doesn't really have any bearing on how well Kain managed his hedges until there is an earnings report.
    9 Jul 2013, 02:52 PM Reply Like
  • William Packer
    , contributor
    Comments (1012) | Send Message
     
    Pine River increased its shares to 4.4m from 1m? wow. That is a big vote of confidence. Pine River Capital is a strong team and they have a deep understanding of the markets. They know they are buying well below book. Without management doing any rebalancing at all book would be $20.62. My understanding is there was almost daily rebalancing so.. book could be in the 22s.
    10 Jul 2013, 02:39 PM Reply Like
  • pgstocks
    , contributor
    Comments (110) | Send Message
     
    Pine River bought 6/26 so a guesstimate at 22.50+
    10 Jul 2013, 05:16 PM Reply Like
  • B172068
    , contributor
    Comments (42) | Send Message
     
    Just noticed you are correct, the names of the 2 companies are so close, I read it as AGNC instead of MTGE...and how is it that Gary Kain is President of MTGE and AGNC?
    27 Jul 2013, 01:12 PM Reply Like
  • B172068
    , contributor
    Comments (42) | Send Message
     
    Like, how can an insider partition their brain so they don't act on the inside information from being presidents of two somewhat similar companies?
    27 Jul 2013, 01:16 PM Reply Like
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