Thursday, January 31, 2008

Bill Ackman Open Source Research

So now even Bill Ackman is embracing the open source model :) In this open letter to MBIA's and Ambac's state insurance regulators, the SEC and the Federal Reserve he states:

"Our primary goal is to initiate what we call “Open Source Research” where all market participants can have equal access to the primary source data and construct their own views of losses without reliance on the analytical judgment of rating agencies or the bond insurance industry. By focusing the discussion on a fundamental, data-driven approach, we expect that the dissemination of the Open Source Model will enable market participants and regulators to accurately estimate probable losses by relying on rigorous fundamental analysis of specific credit exposures, a departure from relying on the opaque, faith-based pronouncements that the bond insurance industry has promulgated to the marketplace."

Bill Ackman runs Pershing Square Capital Management, a hedge fund returning 22% in 2007 betting on the demise of MBIA and Ambac Financial.

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