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.
