Federal Home Loan Mortgage Corporation (Freddie Mac)
Thesis
Charlie Munger expressed discomfort with owning Freddie Mac due to concerns about management's integrity and the company's shift towards accumulating mortgages instead of securitizing them. He believes that the management's actions are corrupting a fundamentally good business and are not transparent about their strategies.
Did it work?
The pitch is a short based on qualitative concerns about Freddie Mac's management integrity and a strategic shift toward holding rather than securitizing mortgages. No price performance data is available and the time elapsed is unknown, and no specific thesis events (e.g., disclosure of improper practices, business deterioration) can be confirmed as having occurred. Without either a measurable return or verifiable confirmation of the thesis dynamics, there is no basis to judge success or failure.