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Fannie Mae and Freddie Mac shares drop despite Ackman's bull case

The article from MSN discusses the recent performance of Fannie Mae and Freddie Mac shares, which experienced a decline despite a bullish outlook from investor Bill Ackman. Ackman, who has a significant stake in the companies through his hedge fund Pershing Square Capital Management, argued that these government-sponsored enterprises (GSEs) are undervalued and could see substantial benefits from potential government reforms. However, the shares dropped after a report suggested that the Biden administration might not support full privatization of Fannie Mae and Freddie Mac, which would limit their ability to retain earnings and potentially reduce their market value. This uncertainty about future government policy has led to a lack of investor confidence, overshadowing Ackman's optimistic projections for the companies.

Read the Full MSN Article at:
[ https://www.msn.com/en-us/money/top-stocks/fannie-mae-and-freddie-mac-shares-drop-despite-ackman-s-bull-case/ar-AA1xjXad ]