Billionaire investor Bill Ackman anticipates that U.S. President-elect Donald Trump will remove Fannie Mae and Freddie Mac from conservatorship, potentially converting them back into private companies.
Ackman shared this prediction on social media platform X on Monday.
Following his post, shares of Fannie Mae surged by 18.4%, while Freddie Mac shares rose 18%.
Ackman noted in his post that Fannie Mae and Freddie Mac could exit conservatorship within the next two years, possibly leading to their public relisting around 2026.
Fannie Mae and Freddie Mac, established by Congress, operate as for-profit corporations with private shareholders.
Their mission is to expand the national home lending market by purchasing home loans from private lenders and repackaging them into mortgage-backed securities.
During the housing market collapse in 2008, both companies incurred massive losses.
To prevent a catastrophic impact on the U.S. economy, they were placed into conservatorship under the newly formed Federal Housing Finance Agency.