Pershing Square Capital Management, L.P. on Fannie Mae
Thesis
With the Trump administration committed to privatization, we believe a simple re-listing of the GSEs on the NYSE can happen quickly, driving a significant re-rating of the shares. This action would unveil a taxpayer asset worth approximately $300 billion. The recent share price declines greatly underestimate how quickly the administration can act to unlock this value.
“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”