Eddie Lampert, billionarie CEO of the $11.6 Billion hedge fund ESL Investments, has been an active buyer lately. And what are they buying?

  • Home builders
  • Mortgage companies
  • Home Improvement chains

They’re so positive on Home Improvement that they have a position in Home Depot valued at a whopping $590 Million (about 22.7 million shares).

Why would a multi-billion dollar hedge fund be BUYING into the very companies that suffer most under a real estate decline? I’ll tell you what’s not going on:

ESL Investments isn’t investing their money in the real estate business because they expect a long-term real estate market failure.

ESL - like Goldman Sachs’ acquisition of SIV Porfolio/Cheyne Finance - believes that the real estate market is nearing or at it’s bottom, and they are gearing up for the inevitable bounce.

Of course, the mere presence of mega-billion-dollar companies actively buying into a beleaguered housing market doesn’t mean that the end of the market bloodshed is here. Or does it? This much is certain: The more support there is in the marketplace, the more likely we are to see the definitive end of the real estate market weakness.

And I believe the end of that market weakness is very near. Your comments & questions are always welcomed here on FreeRealEstateTraining.com!