Steve Eisman vs. Bruce Berkowitz: AIG Battle

David Einhorn publicly came out against St Joe (JOE) a couple of months ago. Bruce Berkowitz already had a sizable position in St. Joe. It seems like Einhorn has won the first round. This is not the first time this year a notable hedge fund manager publicly criticized one of Berkowitz’s large holdings and took the opposite side.

GREENLIGHT CAPITAL

In April, FrontPoint Partners’ Steve Eisman prepared a presentation about AIG, valuing the company at $7/share in his best case scenario. “AIG has no common shareholder equity remaining on its balance sheet”, Steve Eisman wrote in the presentation. “It would likely be insolvent if not for government support, in our opinion.”

In a better-case (yet unlikely) scenario, Steve Eisman estimated the value of AIG’s remaining businesses at $116 Billion. That would leave equity holders with a gain of roughly $7 Billion, or $7 a share, he said. The stock went down 5.3% after Eisman’s presentation, closing at $37.59.

AIG closed at $57.62 on Friday, increasing 53% since April 8th. Bruce Berkowitz’s Fairholme had 15 million shares of AIG at the end of March. Steve Eisman’s presentation depressed AIG’s prices and this led Berkowitz to double his holdings to 32 million shares at the end of June. Insider Monkey, your source for free insider tradingdata, doesn’t know whether Bruce Berkowitz sent chocolates to Steve Eisman but he made nearly $600 Million dollars for his investors from his AIG investments. Steve Eisman, on the other hand, isn’t having a great year. Some are predicting that FrontPoint Partners won’t see another Thanksgiving because of their insider trading related troubles.

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 Jobs that May Exist in the Future

The Absolute Best States to Shop in the US

5 Best States for Golf Adventures

Top 15 Places To Visit Before You Die

10 Most Expensive Smartphones in the World

10 States with Lowest Physician Density

10 Top Reasons For Getting Fired

The 3 Best States to Start an LLC

10 Jobs That Allow You to Travel

7 High-Paying Jobs You Can Do From Home

12 Best Cities to Shop in USA

10 Best States To Practice Medicine

The 10 Best States to Have a Business

The 12 Most Expensive Apple (AAPL) Apps in the Market

The 10 Richest Billionaires in the World

10 Biggest Kickstarter Failures

The 10 Best Places to Work At

The Top 10 of Google Inc (GOOGL)’s Most Expensive Acquisitions

13 Best Cities to Visit in South America

10 Most Expensive Works of Art of All Time

The 10 Richest Banks in the World

The 10 Best-Paying Jobs in America (2014)

7 Most Expensive Foods in the World

The World’s Top 10 Earning Authors

Five Wicked and Very Expensive Items (and Other “Stuff”) Sold on eBay

10 Biggest Celebrity Bankruptcies

The Top 10 Highest Paid CEOs in 2014

The 10 Most Expensive Real Estate Cities in America

10 Most Expensive States To Live In America

The 10 Best Airlines in the World

The 10 Best-Selling Cars in 2014

The 10 Best Industries to Invest In

The 10 Most Expensive States to Own a Car In

Top 10 Business Schools in US: 2014 Rankings

Top 20 Female Billionaires in 2014

6 Movies That You Should Watch to Better Understand The Cold War

Top 15 Best Paying Jobs for Women in 2014

Top 6 Things Rich People Do Differently Every Day

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!