Topline
Shares of Fannie Mae and Freddie Mac surged by more than 30% each on Monday after Bill Ackman called both stocks “stupidly cheap,” the billionaire’s latest bullish bet on the U.S.-controlled mortgage giants he’s lobbied to have relisted on the public markets, as the Trump administration considers plans.
The billionaire has advocated for the U.S.-backed mortgage giants over the last year.
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Key Facts
Shares of Fannie Mae and Freddie Mac, which trade on over-the-counter markets, surged 37% and 33%, respectively, as both stocks paced their largest intraday gains since May 2025.
Ackman and his hedge fund, Pershing Square, have advocated for the U.S. to “immediately” relist Fannie and Freddie on the New York Stock Exchange over the last year and publicly petitioned the Trump administration to do so in November.
In January, Pershing Square said the U.S. should exit its conservatorship over the two companies within the next two years, claiming the move could generate up to $300 billion for taxpayers.
Fannie Mae and Freddie Mac accounted for about 10.8% of Pershing Square’s portfolio performance in 2025, according to the hedge fund.
Ackman hyped the stocks on X late on Sunday, calling them “stupidly cheap,” adding he believes they could boast a 10-times return on investment.
Key Background
The Federal Home Loan Mortgage Corporation and the Federal National Mortgage Association, known as Freddie Mac and Fannie Mae, were each placed into a federal conservatorship during the global financial crisis in 2008. The U.S. directed both companies to delist from the New York Stock Exchange in 2010 after the common shares of both firms dropped below $1. Both Freddie Mac and Fannie Mae have traded below $1 in recent years, though the companies’ shares traded at a five-year high in September 2025, largely on renewed optimism the Trump administration would end its conservatorship. Shares have traded down in recent months as homebuying has slowed amid higher mortgage rates and higher prices.
What To Watch For
Whether Trump announces IPO plans for Freddie Mac and Fannie Mae. Trump, in a Truth Social post in May 2025, said he was “working on” taking Fannie Mae and Freddie Mac public, but he has yet to provide specifics. Federal Housing Finance Agency Director Bill Pulte told CNBC in January that Trump could announce plans for an IPO by March.
Contra
“Big Short” investor Michael Burry last week called IPO plans for Freddie Mac and Fannie Mae a “2027 proposition at best,” claiming investors would likely be nervous amid broader economic uncertainty brought on by the Iran war. Burry also claimed the U.S. housing market, facing higher prices and mortgage rates, was “in for a long winter.”
Forbes Valuation
Ackman, who founded Pershing Square in 2004, has an estimated net worth of $8.8 billion as of Monday, ranking him the 374th-richest person in the world. His hedge fund oversees roughly $30 billion in assets, with its limited stock portfolio spanning 13 firms, including Alphabet, Amazon, Brookfield and Uber, among others.
Tangent
Ackman’s Pershing Square filed earlier this month for an IPO on the New York Stock Exchange alongside the launch of a new fund, Pershing Square USA. He seeks to raise up to $10 billion for Pershing Square USA, with shares available at $50 per share. For every 100 shares of the stock purchased in the IPO, Pershing Square said it would deliver 20 shares of Pershing Square Capital Management’s common stock.
Further Reading
