Hedge fund tycoon shouts "tenfold opportunity" as Fannie Mae and Freddie Mac surge 41% and 34% intraday.

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Boosted by hedge fund mogul Bill Ackman’s public bullish stance, Fannie Mae and Freddie Mac both saw their largest single-day gains since May 2025 on Monday, with Fannie Mae rising as much as 41% and Freddie Mac up as much as 34% during intraday trading.

The immediate catalyst for this rebound was Ackman’s high-profile statement on social media declaring the two agencies’ stock prices “ridiculously cheap.” However, the day’s gains only partially recovered the deep, extended declines from previous months. As of this writing, both stocks are still down about 60% from their mid-September highs last year.

The market’s doubts about the Trump administration’s prospects for pushing Fannie and Freddie out of government conservatorship continue to mount, and this central suppressing factor has yet to see any substantive change.

Ackman’s Call: Could Be a "10x Opportunity"

Posting on X, Ackman said Fannie Mae and Freddie Mac represent “the best asymmetric investment opportunity,” forecasting “a possible tenfold return, potentially realizable in the short term.”

The Pershing Square Capital Management founder placed the current opportunity in a broader investment context, pointing out that “some of the world’s highest-quality companies are trading at extremely low prices” and calling this “one of the best times in recent years to buy premium assets.”

Ackman had previously lobbied the White House actively regarding Fannie and Freddie’s privatization restructuring plans. His public remarks are therefore closely watched by the market and seen as an important indicator for interpreting relevant policy developments.

Stock Prices Still Deep in the Trough; Policy Uncertainty Dominates Valuations

Despite the significant single-day gains, after Monday’s surge, the two stocks remain down about 60% from their interim peak in mid-September last year.

The prior steep decline was mainly due to the market’s waning confidence in the Trump administration’s roadmap for reforming the two agencies. Since the 2008 financial crisis, Fannie and Freddie have been under federal conservatorship. There were once expectations that the new administration would accelerate their return to the private market, and those expectations previously drove the stocks much higher. But as the policy timeline became increasingly unclear, the earlier premium was quickly corrected.

For investors, the valuation trends of Fannie and Freddie still rely largely on the pace and strength of policy implementation. While Ackman’s public endorsement has boosted market sentiment in the short term, whether it can reverse policy-level uncertainty remains to be seen.

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