Michael Burry Concurs With Bill Ackman Over Fannie Mae, Freddie Mac's Potential 10X Returns

Shares of Fannie Mae and Freddie Mac surged to record double-digit gains after Pershing Square's Bill Ackman said in a post on X that the companies are 'stupidly cheap' and could offer investors a 10X return.

'Fannie and Freddie are stupidly cheap. Asymmetry at its best. They could be a 10X, and it could happen soon,' Ackman said in a recent post on X.

Ackman had bullish social media commentary on the two firms in recent weeks, which also drew rare support from the Big Short's Michael Burry. His argument highlighted that the two firms were treated unfairly by the United States government after the 2008 financial crisis.

Burry, who netted hundreds of millions of dollars during the 2008 recession, concurred with Ackman's view on Fannie Mae and Freddie Mac. 'Agree with Bill Ackman/Pershing Square,' he stated on Substack. 'This is an important read for all interested in Fannie Mae and Freddie Mac.'

In a separate post on X responding to Ackman's tweet, Burry wrote: 'Cannot emphasise enough how rare this is in this market.'

Burry disclosed a substantial stake in Fannie Mae and Freddie Mac in December 2025, despite having been critical of them earlier. He had explained earlier that the companies played a major role in the 2008 housing market collapse by purchasing large amounts of subprime mortgages, adding that his perspective had shifted with the Trump administration back in power due to certain policies the president had proposed.

However, in a Saturday open letter, Burry argued that the US housing crunch is less about a lack of homes and more about misallocated space, with federal policy and the long-running conservatorship of Fannie Mae and Freddie Mac keeping them operating like slow public programmes rather than market-driven mortgage companies.

Ackman Says Ignore The Bears

In a separate post on X, Ackman said it is the best environment for picking stocks and investors should not pay heed to bears.

'Some of the highest quality businesses in the world are trading at extremely cheap prices. Ignore the MSM. One of the most one-sided wars in history that will end well for the US and the world. And we have the potential for a large peace dividend. One of the best times in a long time to buy quality. Ignore the bears,' he wrote.

The billionaire investor has officially set the wheels in motion to transform his hedge fund into a permanent capital powerhouse, filing for a dual initial public offering on 10th March to raise up to $10 billion through the simultaneous listing of two entities: Pershing Square and a new US-listed closed-end fund called Pershing Square USA.

Ackman aims to mirror the 'permanent capital' model perfected by his mentor, Warren Buffett, allowing the firm to make aggressive, long-term bets without the constant threat of investor redemptions.

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