Kao’s Akanthos Capital Up in 2013 On Fannie Mae, Freddie Mac Prefs

Fannie Mae / Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC) were among Akanthos Capital Management’s top five positive contributors for 2013, even though common stock holders didn’t actually receive any dividends from the two government sponsored enterprises (GSE) this year. The hedge fund managed by Michael Kao was up 5.18% in the fourth quarter and maintained less than 20% average exposure to equities, getting most of its gains from idiosyncratic events, according to a letter to investors reviewed yb ValueWalk.

Fannie, Freddie among top positive contributors

“Fannie Mae and Freddie Mac preferred securities gained...