William Ackman on Fannie Mae
From Bill Ackman Milken Conference 2026-MAY-04 Monday · · TorontoWealthGroup
“The simplest solution for Fanny Freddy is the following. So the the most important thing that needs to be resolved for the existing shareholders of Fanny and Freddy is that the government has been repaid. They're the government injected $191 billion into both companies. Government got repaid 301 billion which is that preferred investment plus almost a 12% interest rate. So the government got more than it was contractually owed. Meanwhile, the 191 billion plus a couple billion of upfront payments sits on the balance sheet of the company as if it's never been repaid. That those payments have to be acknowledged by the government. That's kind of step one. Once you do that, now they have you kind of extinguish the balance sheet line item. You'll account for the payments on the preferred. You now have effectively companies that are very well capitalized. The government exercises the warrants it owns. It gives the Trump administration 7.22 billion shares of both companies and then you list on the New York Stock Exchange and that those three steps will unlock hundreds of billions of value.”
On , William Ackman, CEO & Portfolio Manager at Pershing Square, spoke about Fannie Mae during Bill Ackman Milken Conference 2026-MAY-04 Monday on TorontoWealthGroup.
About William Ackman
In late April and early May 2026, Bill Ackman oversaw the dual IPO of Pershing Square USA (PSUS), a new closed-end fund, and Pershing Square Inc. (PS), the alternative asset management company. The offering raised $5 billion, which Ackman described as the sixth-largest IPO in the prior decade and the largest closed-end fund offering in U.S. history. He stated that the capital would be deployed within weeks, calling it a "great time to put the capital to work." Ackman emphasized that the fund would differ from typical closed-end funds by offering lower fees, better governance, quarterly earnings calls, and investor days, and he characterized it as "the rebirth of the closed-end investment company universe." He also noted that retail investors received larger allocations than usual, which he said contributed to early trading volatility. Ackman discussed his investment philosophy in several interviews, stating that the most important factor in his approach is "business quality" and the durability of a company's growth. He said that founder-led companies are particularly attractive because their leaders have long-term stakes in the business. On the topic of artificial intelligence, Ackman described it as both the "greatest time to build a business" and a "major threat to portfolios," adding that every company is now an AI company and that boards are prioritizing the topic. He expressed a bullish view on the market, saying that stocks are "fairly valued" and that he sees "cuts ahead" for interest rates. Ackman also commented on his activist campaign involving Universal Music Group, stating that the company needs a "reset" and that his proposal includes a move from Amsterdam to a U.S. listing, a new board led by Mike Ovitz, and a more aggressive buyback program. He said succession at Pershing Square is already in place.