Bill Ackman’s hedge fund Pershing Square has long viewed its stake in Fannie Mae and Freddie Mac as a “lottery ticket.” Now, that bet might finally pay off. With Fannie Mae’s stock trading higher than it has in years, analysts suggest Ackman’s position could be worth as much as $10 billion. This development highlights both the risks and rewards of his contrarian investing style.
Ackman’s hedge fund has already seen big returns in 2025. Pershing Square’s publicly traded vehicle reported an 18.4% gain through August, outpacing the broader market’s 10.5% growth. Remarkably, nearly half of those gains came from Fannie Mae and Freddie Mac, cementing them as some of Ackman’s most profitable holdings this year.
Why Bill Ackman’s Fannie Mae Position Matters
When Ackman bought into Fannie Mae and Freddie Mac back in 2013, shares were trading between $2 and $3. Today, they hover around $12, with Fannie Mae becoming Pershing Square’s most profitable holding of the year. Nearly half of the fund’s 18.4% net gain in 2025 has come from these mortgage giants.
Even conservative estimates suggest the potential windfall is massive. The Federal Housing Finance Agency recently indicated that the government may sell about 5% of its stakes in the mortgage firms, which it still controls after the 2008 financial crisis. FHFA head Bill Pulte suggested Fannie and Freddie could be worth $500–$700 billion to the U.S. government.
Ackman’s Long-Term Strategy
Ackman has long believed in the case for privatization, telling investors that the process could be “the biggest deal of all time.” While previous hedge funds such as Perry Capital and Paulson & Co. lost heavily betting on the mortgage giants, Ackman held steady for more than a decade.
If Pershing Square still owns close to its original 10% stake of the non-government shares, the potential upside is enormous. Under FHFA’s valuation, Ackman’s portion could be valued around $10 billion. That would be half the size of Pershing Square’s entire operation.
Looking Ahead
The political backdrop may also work in Ackman’s favor. After voicing support for former President Trump, he noted that Trump might want to be the one to finalize privatization. While the timeline remains uncertain, investors now see this as the closest Ackman has ever been to realizing his vision.
For more on related financial markets, see our coverage of [hedge fund performance in 2025] and [U.S. housing market news]. For broader industry insights, visit S&P Global Market Intelligence and MarketAxess.
