Hedge fund chief William Ackman told investors this month he made a mistake buying the stock of troubled insurer American International Group Inc and has now sold out his interest.
In a 16-page letter to investors in his Pershing Square Capital Management, Ackman wrote that the company's 33.1 million share investment in AIG (nyse: AIG - news - people ) -- 1.2 percent of the company -- had been a mistake.
'We ultimately concluded that the return on invested brain damage from this investment exceeded the probability-weighted opportunity for profit, and we decided to fold the tent,' he said in a letter, of copy of which was obtained and made public by DealBook in The New York Times.
'We sold our stock and incurred a modest loss to the funds.'
Hey loser, this news is more than two months old! Ackman was short on AIG and lost his shirt. He bought it at $1.55 and thought it would be on the pink sheets. He then realized his mistake and sold because there was no short play for him. He said it was a mistake. AIG is very healthy, just unpopular right now.
Funds like that want immediate returns. They aren't investing long term, they are in it to get a big bump, and split. If he went a couple quarters with no real gain, he's be in it DEEP. He covered his butt, took a loss, and allowed a real invester (long term) to realize his losses. AIG is here to stay, and will NOT be a penny stock, deal with it.