Fannie Mae-No Politics (FNMA)

[eltatriton]

This will drop/pop, rinse and repeat until we get CONFIRMATION of good news. All we've had is speculation so far.

Berkowitz and Ackman knew Corker was working on a new bill (as they mentioned months ago), and that was confirmed two days ago. They put a target on a favorable resolution in early 2018. Knowing how these sorts of timelines always get pushed back, I'd say this is settled in Q2 2018. By summer if I had to guess.

Unless someone has proof that Berkowitz or Ackman are liquidating their positions, I'm going to stay long. These two guys and other hedge funds involved in this have inside information. Berkowitz was involved in settlement talks with the government in 2016. Paulson shut down his HF but kept all his F&F. Berkowitz and Ackman knew about Corker's bill. This isn't Berkowitz buying more Sears, or Ackman trying to save Valeant. They've both made bad calls, but this is a totally different play with different dynamics. It all hangs on whether these get released on conservatorship, whether shareholders are treated fairly, and what happens with the warrants. I'd say Ackman and Berkowitz got guarantees of some sort that their investments will work out somehow. That's why they've stayed bullish all these years, and why Ackman added a lot of FNMA in September.