White Mountain Insurance | WTM | White Mountains Advisors - MBS trouble?
White Mountain Insurance | WTM | White Mountains Advisors
White Mountain Advisors like all insurance companies invest in fixed income securities to safeguard their investment assets which are the assets of their policyholders of White Mountain Insurance group’s subs.
The question is how much trouble is David Linker the Asset/mortgage back security expert at White mountains advisors in? I do not know. Until I get the facts I would say no. They are not in trouble. But I would say I want to see their investment returns. What I do know is White Mountain Advisors invested a lot of money and trust and David Linker’s affection for Mortgage backed securities. White mountain advisors had in my opinion a heavy investment in these securities. For White mountain insurance, certainly they yield more than safer more traditional fixed income investments, I really am curious to peak at the loss or gains connected with WTM investment portfolio, which was over 11 billion in assets. If they did take a big hit this year, I am curious about what affect it would have on their parent company. White mountain Insurance.
Tags: White Mountain Advisors, White Mountain Insurance, wtm
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July 14, 2008at 4:49 am
@Saper for me someone who watches industry giants I think it is. WTM stock has declined from 600+ to 400+ dollars a share and there has to be a reason why. If there is a core reason why financial companies are melting down I want to know as it can spread to other sectors. Fannie Mae and Freddie Mac are a very important part the of the economy and it does affect the insurance industry.
July 17, 2008at 12:56 pm
it appears the market has discounted the entire level 3 asset inputs into share price. where half the value is equities and fixed income the other half is partnerships. i find it hard to believe after avoiding most of this credit bubble that they had exposure in these illiquid dog investments.
July 17, 2008at 12:58 pm
Also you make alot of “IF” statements and rumors if this guy did this or that. You do not know and i would trust the mgt here before any rumors.
the president bought 2000 shares at 445 a few weeks back
July 18, 2008at 1:54 am
grinder- Good points. I watch it everyday. The chief did buy a lot of shares, but the chief of investments sold a lot. So I do not put much weight on insider trading like that. I want to look at the numbers and the companies holdings. My question is, do they own MBS or now? I was in charge of investment accounting for OneBeacon (owned by WTM) and I was at White Mountain Investments setting up their investment system, and I saw that they were into MBS and David really love to trade and deal in MBS. Being in charge of Investments accounting I saw every security and investment, every detail and gain or loss. I knew every security better than maybe the chief. A large part of their portfolio was Bonds and MBS. My question is in the last few years did they get out of these? I do not know, but I think they stayed in MBS as MBS were David’s thing. And if they stayed did they make a profit or loss. I am waiting to see their Investment returns this year. I based my comment on what I knew a few years ago working with them. Until I see their investment returns I personally am not buying WTM. Until their PE comes down I am not buying WTM. They were not a good buy at 600 and I am waiting for more information before I personally would ever touch that stock, as there are better values in the market now with a lot less risk. On the other hand I like the people who work there, but that is on a personal level. But I can not let my emotions get into it, I really want to know the facts.