Bill Ackman anticipates that US President-elect Donald Trump will remove Fannie Mae and Freddie Mac (OTCQB:FMCC) from conservatorship, potentially converting them into private entities.
Following Ackman’s remarks on social media platform X, Fannie Mae and Freddie Mac (OTCQB:FMCC) stock surged 36% and 34% respectively.
The hedge fund manager suggested the companies might exit conservatorship within two years, potentially leading to a public listing by 2026.
Fannie Mae and Freddie Mac, created to enhance home lending by purchasing loans and repackaging them as mortgage-backed securities, have operated under conservatorship since 2008.
They were placed under the Federal Housing Finance Agency following significant losses during the financial crisis.
Ackman’s comments come as both entities face growing speculation about their future role in the housing finance system.