Bill Ackman Comments on Fannie Mae and Freddie Mac

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Aug 23, 2022
Summary
  • An overview of the two companies.
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Fannie Mae (

FNMA, Financial) (“FNMA” or “Fannie”) and Freddie Mac (FMCC, Financial) (“FMCC or “Freddie”) (together “the GSEs”)

There have been no material updates for Fannie Mae and Freddie Mac in 2022. Both entities continue to build capital through retained earnings and now hold combined capital of $91 billion, up from nearly zero. As we have stated previously, as principally common shareholders (we own a small amount of preferred stock), we own valuable perpetual options on both entities that over the long term we believe will be worth many multiples of today’s prices once re-privatization occurs.

From

Bill Ackman (Trades, Portfolio)'s Pershing Square semiannual 2022 letter.

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I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours. Click for the complete disclosure
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