Pershing Square Capital Management, L.P. on Freddie Mac
Thesis
The Trump administration's commitment to privatization presents a clear path to unlock value in the GSEs. A quick re-listing on a major exchange, which can be executed without disrupting the mortgage market, would cause a re-rating of the shares and reveal a taxpayer asset worth around $300 billion. Current share prices do not reflect this near-term potential.
“Fannie and Freddie shares more than tripled in 2025 as the Trump administration reiterated its commitment to an eventual privatization... We believe YTD share price declines greatly underestimate how quickly President Trump can act to drive a re-rating of shares and unveil a taxpayer asset worth ~$300 billion”