article dated nov 28 07
he (Ackman)seems so assured of his bet against bond insurers that he says he will donate the more than $500 million he expects to earn from those short positions to charity.
Mr. Ackman, who heads Pershing Square Capital Management, told the Value Investing Congress that he expects the holding companies of MBIA and Ambac Financial, the two largest bond insurers, to fail as soon as next year. He said he stands to gain about $500 million if MBIA fails, and his hedge fund several billions of dollars if both fail. (His personal gains would go to the Pershing Square Foundation, he said.)
“We’re short the holding companies because we think they’ll run out of cash and go bankrupt,” Mr. Ackman, who first criticized MBIA in a 2002 report, told Bloomberg News. “What I said at the time to regulators and anyone who would listen is that this is a problem now, but it’s going to be a bigger problem later.”
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