Overview
- Fannie Mae and Freddie Mac, which Bill Ackman said could be a 10x trade in a late-Sunday post, jumped more than 30% Monday in their biggest one-day rally since May 2025.
- Prices hovered near $7 to $8 Tuesday after spiking above $8 intraday, leaving both stocks still well below their September 2025 highs and down for the year.
- Michael Burry publicly backed Ackman’s view, calling the setup rare in this market and adding fresh attention to the trade.
- Ackman’s Pershing Square is the largest common shareholder in both GSEs and is pursuing a New York Stock Exchange listing and a new U.S. fund, aligning his public pitch with clear financial incentives.
- The two mortgage companies have been under federal conservatorship since 2008, and while the Trump administration and regulators have signaled interest in privatization, timing and capital rules remain in flux, with some economists warning a rushed exit could raise borrowing costs for homebuyers.