Fannie Mae-No Politics (FNMA)

[11L]

February 2018
Bill Ackman’s Investor Pres (Jan 2018): Fannie & Freddie; Herbalife Short; Nike, ADP, Mondelez; Chipotle; QSR; HHC; PAH
February 3, 2018
Pershing Square London Investor Meeting, January 29, 2018 6% net returns since inception (1/1/04) vs. 220.8% S&P 500 Core
https://investoralmanac.com/
Fannie Mae (FNMA) and Freddie Mac (FMCC)

Any proposal for housing finance reform must satisfy the following conditions in order to succeed
Simplicity to ensure broad support and minimize systemic risk
Appealing investment proposition to raise new private capital, including visibility into long-term earnings power
Fair treatment of current investors in Fannie and Freddie in order for new capital to be raised
While momentum for reform is stronger now than at any time since the conservatorship began, several key points of debate remain
Feasibility and desirability of creating new competitors
Appropriate capital levels, rates of return, and degree of regulation
Treatment of various classes of securities in Fannie and Freddie
If housing finance reform is successful, we believe Fannie and Freddie will be worth multiples of their current share prices