Seeking Alpha

Kain rings the register on Hatteras

  • American Capital Agency (NASDAQ:AGNC) and American Capital Mortgage (NASDAQ:MTGE) as of yesterday disclose a 4.53% stake in Hatteras Financial (NYSE:HTS) vs. their combined 8.5% stake from late January.
  • AGNC and MTGE CIO Gary Kain - late last year and early this year noting the absurdity of large swaths of the mREIT industry trading at sizable discounts to book value - was an aggressive buyer of his own stock and that of other mortgage REITs (though Hatteras was the only publicly disclosed purchase).
  • Not including sizable dividends, Hatteras has returned about 20% YTD, as has American Capital Agency. American Capital Mortgage is up about 12.5%.
Comments (1)
  • William Packer
    , contributor
    Comments (787) | Send Message
     
    Yeah.. Mtge is very undervalued compared to agnc. It's strange considering mtge has less rate risk, access to MSR market, etc.
    23 Jul 2014, 07:40 PM Reply Like
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