Fannie Mae-No Politics (FNMA)

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Fannie, Freddie leap on Pershing Square investment

NEW YORK (MarketWatch) - Pershing Square Capital Management LP and its chief executive, Bill Ackman, disclosed a 9.77% stake in the Federal Home Loan Mortgage Corp. /quotes/zigman/226335/delayed/quotes/nls/fmcc FMCC +6.55% , more commonly known as Freddie Mac, and a 9.98% stake in the Federal National Mortgage Association /quotes/zigman/226360/delayed/quotes/nls/fnma FNMA +7.84% , commonly known as Fannie Mae, according to filings Friday with the Securities and Exchange Commission. Pershing said it has acquired 63.5 million common shares in Freddie Mac and 115.6 million common shares in Fannie Mae and described both as undervalued. The moves come two day after Fairholme Capital Management, a Miami-based mutual-fund company, offered to buy parts of Freddie Mac and Fannie Mae and recapitalize them. Pershing said it may enter into discussions about the firms with the management, board and shareholders of both companies as well as the federal government. Freddie Mac shares soared 10% in early trade while shares of Fannie Mae leapt more than 9%.

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