Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Jeffrey Tannenbaum and Fir Tree Partners’ Bullish Bet on MGIC Investment Corp $MTG

Jeffrey Tannenbaum founded Fir Tree Partners in 1994. He is a value investor focusing on cash flows, net asset values, and private market values. He sees his stock purchases as buying a piece of a business. He pays attention to downside risks, and invests with a 2-4 year horizon. He also invests in distressed companies and companies that are going through bankruptcies. Fir Tree has more than $2 Billion under management.

MGIC Investment Corp. (NYSE:MTG)

Fir Tree recently disclosed a 5% stake in MGIC Investment Corp (MTG). At the end of December Fir Tree had 4.47 Million shares of MTG in its portfolio. On April 20th Jeffrey Tannenbaum purchased an additional 6 Million shares. On that day the stock closed at $7.45. The next day several insiders of MTG purchased 125 thousand shares of the company at around $7.75 per share. By the end of next trading day MTG was trading at $8.35 again. Tannembaum made around %10 from this opportunistic purchase which was acknowledged by corporate insiders.

There were other hedge funds with large positions in MTG at the end of December. John Griffin’s Blue Ridge, Leon Cooperman’s Omega Advisors, Remy Trafelet’s Trafelet Capital, Peter Adam Hochfelder’s Brahman Capital, and Benjamin Slavet’s Ascend Capital were bullish about MTG. The stock lost nearly 18% so far in 2011.