Sabretooth Capital’s Erez Kalir presented a bullish case for MBIA (MBI) and the stock jumped 2% within minutes. Since then it gave back most of the increase though. Kalir said they have done a rigorous analysis of MBI’s risks and thinks the stock price reflects those risks more than necessary. Erez Kalir thinks the stock has the potential to double or triple and the downside risk is only 40%.
We haven’t done any analysis about MBI but we can check which hedge funds are bullish about MBI as well. Here are they:
1. Bruce Berkowitz – Fairholme: Berkowitz had $414 Million in MBI at the end of March.
2. Ron Gutfleish – Elm Ridge Capital: Gutfleish had $73 Million in MBI.
3. Debra Fine – Fine Capital: Fine Capital had $42 Million in MBI at the end of March. Fine also had $16 Million in MBI call options.
4. Irving Kahn – Kahn Brothers: Kahn had $31 Million in MBI at the end of March.
5. David Slager and Nat Rothschild – Attara Capital: Attara had $16 Million in MBI.
6. Jim Simons – Renaissance: RenTec had $11 Million in MBI.
7. Jeffrey Tannenbaum – Fir Tree: Tannenbaum had $11 Million in MBI.