Billionaire investor Bill Ackman encouraged investors on Sunday to ignore Iran war fears and buy shares in Fannie Mae and Freddie Mac. On Monday, Fannie Mae surged 41% and Freddie Mac climbed 34%, marking their largest single-day moves since May. Ackman, who holds more than 210 million shares in both companies through his fund Pershing Square Capital, called the stocks « stupidly cheap » with potential for a 10X return. Both companies are highly profitable, with Fannie Mae posting $14.4 billion in net income and Freddie Mac $10.7 billion last year, yet their combined market cap was roughly $10 billion before Monday’s move. Ackman’s post came on the last trading day of Q1 2026, raising questions about timing given that he is the largest shareholder in both companies, while Michael Burry also showed support for the trade.
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