Tags: Ackman | Bullish | Fannie | Freddie

Investor Ackman Bullish on Fannie Mae, Freddie Mac

Monday, 05 May 2014 05:10 PM

Bill Ackman, who runs the $15 billion Pershing Square Capital Management LP, said Monday that stock of Fannie Mae and Freddie Mac will probably soar because there’s no way to replace the companies.

Fannie Mae could be worth $23 to $47 a share over time, said Ackman, 47, speaking at the 19th annual Sohn Investment Conference in New York. Fannie Mae reversed losses and rose 3 percent to $4.10 at 4 p.m. in New York trading. Freddie Mac shares rose 6.3 percent to $4.23.

Pershing Square has about 11 percent economic exposure to Fannie Mae and Freddie Mac shares based on common stock outstanding. While lawmakers are weighing efforts to wind down the companies, Ackman said without the role of the government sponsored enterprises mortgage rates would jump.

“There is no viable alternative,” to Fannie Mae and Freddie Mac, Ackman said in a Bloomberg Television interview with Stephanie Ruhle after the Sohn presentation.

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Bill Ackman, who runs the $15 billion Pershing Square Capital Management LP, said Monday that stock of Fannie Mae and Freddie Mac will probably soar because there's no way to replace the companies.
Ackman, Bullish, Fannie, Freddie
153
2014-10-05
Monday, 05 May 2014 05:10 PM
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