Billionaire hedge fund manager Bill Ackman expects that the upcoming Trump administration will remove the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) from government conservatorship. In a post on Monday, Ackman highlighted this potential shift as a key opportunity for returns in his portfolio, which has held these stocks for over a decade.
He noted that during US President-elect Donald Trump's first term, initial steps were taken toward privatization but were not completed. Ackman believes Trump’s second term will finalize the process, estimating this move could generate over $300 billion in additional federal profits and reduce $8 trillion in liabilities.
Ackman says in one scenario, he envisions an IPO for the two entities by Q4 2026, projecting a combined capital raise of $30 billion to meet regulatory standards. With shares potentially valued at $31 each, he predicts a promising financial outcome for both investors and the government.
