I Know First Research
Long/short equity, hedge fund analyst, investment advisor, Algorithmic trading

Fannie Mae & Freddie Mac: A Risk Worth Taking

Up until a year and half ago, it would have been unthinkable to invest in Fannie Mae (OTCMKTS:OTCQB:FNMA) and Freddie Mac(OTCMKTS:OTCQB:FMCC), the two government-sponsored enterprises (GSEs) that were forced into government conservatorship in 2008 after suffering heavy losses from the bursting real estate bubble. The Treasury Department seemed intent on dismantling them and commandeering all their profits for itself, while shareholders seemed to have no promising way to fight back. However, investing in these GSEs has recently become much more attractive as Congress appears more willing to leave the GSEs intact and as a shareholder lawsuit against the government's illegal seizure of assets is gaining steam.

When Fannie Mae's stock rose nearly 200% in March 2013,...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details