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Bill Ackman (Trades, Portfolio), CEO of Pershing Square, isn't one to casually throw out stock tips, but when he does, investors listen. And right now, he's laser-focused on Fannie Mae (FNMA) and Freddie Mac (FMCC). Ackman revealed that these stocks, long part of his portfolio, could finally deliver massive returns. Why? He sees a clear path for their release from government conservatorship, potentially under a second Trump administration. Ackman predicts IPOs in 2026, valuing the stocks around $34 per share. His take? This could be one of the biggest investment plays in modern historyif Trump gets it done. But he's crystal clear: don't bet the farm on it. There's still significant risk in the mix.
Meanwhile, the Federal Housing Finance Agency (FHFA) is adding fuel to the narrative by laying down fresh rules for 20252027. Their new housing goals aim to boost low-income and multifamily loan acquisitions for Fannie Mae and Freddie Mac, pushing the Enterprises to better serve underserved communities. This isn't just regulatory housekeeping; it's a framework that could make these companies more attractive and financially viable ahead of potential privatization. From low-income home purchase benchmarks to multifamily housing targets, FHFA is setting the stage for a transformation that investors like Ackman have been waiting over a decade to see.
Put it all together, and you've got the perfect storm: political momentum, regulatory clarity, and investor optimism. Ackman's confidence aligns with the FHFA's plans, and if the stars align, both shareholders and the U.S. government could see windfall gains$300 billion for Uncle Sam, by his math. The stakes are sky-high, but so is the upside. For investors, it's a bet on big deals, big moves, and potentially, big rewards. Just know the risks before diving in.
This article first appeared on GuruFocus.