Ackman pitches Fannie and Freddie at Ira Sohn

One of the hot hands in the hedge fund world at the moment, Bill Ackman reiterates his bull case on the GSEs. Owning Fannie Mae (FNMA -1.8%) and Freddie Mac (FMCC -1.8%), he says, is like owning a royalty on the housing market.

Ackman first disclosed stakes in the common stock of both last November and boosted those bets with a derivative play earlier this year.

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Comments (5)
  • divStrong
    , contributor
    Comments (165) | Send Message
    Here are some additional highlights from Ackman's presentation @


    "New, private-label Fannie and Freddie’s that have been proposed by regulators would require the GSEs raise up to $500 billion to capitalize them, Ackman says, but taking a swipe at recent Government actions, Ackman says that the history of the government having “stolen” the dividends makes this proposal unlikely."


    While our government is certainly no stranger to waste, the idea of 'winding down' two profitable, properly functioning entities to then turn around and re-create a near identical GSE with the same mortgage mandate seems to be a monumental waste of time, talent & treasure and is beyond logic IMO.
    5 May 2014, 04:10 PM Reply Like
  • Paul Cheung
    , contributor
    Comments (33) | Send Message
    They are trying to create a bigger bureaucracy to ensure a bigger failure in next housing crisis. That's government, worldwide.


    Or, now that Fannie is the most profitable organization in this world, they would like to kick them out to eat their lunch ??
    8 May 2014, 04:48 AM Reply Like
  • Bradgrp61172
    , contributor
    Comments (86) | Send Message


    Who would put their money at risk, again, with a new GSE after the government has stolen their ownership interest in the current GSEs. Its simply illogical for any legislation to think "private equity" would support a newly created GSE. Its simply absurd!


    If Congress wants to ensure that the taxpayer isn't put at risk of bailing out the GSEs in the future, all that needs to be done is to remove the government charter and let the GSEs function totally as publicly-traded corporations.


    At least the taxpayer hasn't lost any money on the GSEs as in the case with GM.
    5 May 2014, 04:19 PM Reply Like
  • lord1nelson
    , contributor
    Comments (4) | Send Message
    5 May 2014, 04:26 PM Reply Like
  • Caludio
    , contributor
    Comments (394) | Send Message
    Hey Mr Johnson and Mr Crapo
    If you need 500B to capitalize the new experiment , please do not count on me. ha ha ha ... I only have a few grands...and besides I don't like the idea ha ha ha


    Don't kill homeownership! Save Fannie Mae.
    5 May 2014, 04:46 PM Reply Like
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