Bill Ackman is not selling his substantial position in Fannie Mae (FNMA) and Freddie Mac (FMCC) because he believes they are significantly undervalued, and a rushed IPO or sale under current conservatorship would destroy value for shareholders. He argues the companies are primed for a massive, 300%–400% surge in value if privatized correctly, preferring a "relisting" strategy over a quick, discounted exit.
Key Reasons for Holding:
Massive Upside Potential: Ackman believes that once they emerge from the 17-year government conservatorship, these stocks could soar based on their earnings, particularly if they are relisted on the NYSE, which he believes would bring higher valuation multiples than the current over-the-counter market.
Opposes Rushed IPO: He stated in late 2025 that a sale of these entities is "neither feasible nor desirable at this moment," as a hasty IPO would undervalue them and risk destabilizing the mortgage market.
Proposed "Alternative" Exit: Ackman advocates for a specific, structured plan where the Treasury exercises its warrants (gaining 79.9% of shares), declares the senior preferred stock repaid, and then releases the companies, allowing private capital to recapitalize them.
Long-Term Commitment: Ackman has held these positions since around 2013, viewing them as a "lottery ticket" that is closer than ever to realization under a new administration.
In short, Ackman believes the current, long-awaited turnaround plan will yield far greater returns than selling at today's prices.
In early 2026, Bill Ackman reiterated his long-standing position on Fannie Mae (FNMA) and Freddie Mac (FMCC), naming the release of the mortgage giants from federal conservatorship his "Best Idea for 2026".
In a February 2026 investor presentation, Ackman confirmed he remains "long and strong" in both companies, viewing the path to privatization as a $10 billion opportunity for his firm, Pershing Square.
Recent 2026 Quotes and Projections
On the Scale of the Deal: "Trump likes big deals and this would be the biggest deal in history. I am confident he will get it done".
On Potential Valuation: "We estimate the listed value of these companies approaching $400 billion, with the administration's Treasury stake being worth in excess of $300 billion".
On the 2026 IPO Target: Terming a late 2026 IPO a "highly achievable outcome," Ackman estimated that each company's share value could reach $34 per share by the time of the offering.
On Taxpayer Benefits: Ackman argues his plan would turn a crisis-era burden into "one of the greatest taxpayer success stories in financial history".
Ackman's Three-Part Strategy (2026 Update)
As of early 2026, Ackman continues to advocate for a "walk before you run" approach rather than a rushed sale:
Acknowledge Repayment: Formally recognize that the GSEs have already returned over $300 billion in profits to the government, fully repaying their initial bailout.
Exercise Warrants: Have the Treasury exercise its warrants to take a 79.9% ownership stake, formalizing the government's windfall.
NYSE Relisting: Move the stocks from the over-the-counter (OTC) market back to the New York Stock Exchange to attract institutional liquidity before any final public offering
Bullish
Market Data 
Markets 
