Ordering a company valuation also supports the project’s development.
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Amounts rounded as in the company release. Separate scales for the two measures; net worth is not common-stock value.
| Quarter | Net income (USD billion) | Net worth (USD billion) |
|---|---|---|
| Q2 2025 | 3.3 | 101.6 |
| Q3 2025 | 3.9 | 105.5 |
| Q4 2025 | 3.5 | 109.0 |
| Q1 2026 | 3.7 | 112.7 |
| Q2 2026 | 4.0 | 116.5 |
Warrant-exercise-only scenario. Ownership percentages, not share-price changes. Excludes other issuance and conversions.
| Scenario | Existing shareholders (%) | US Treasury (%) |
|---|---|---|
| Before exercise | 100.0 | 0.0 |
| After exercise | 20.1 | 79.9 |
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Fannie Mae and Bill Ackman: a profitable business, a political bet
Information as of 23 October 2026. Financials: Q2 2026; PSH position confirmation: 30 September 2026. Historical Pershing Square ownership figures are not current holdings.
Fannie Mae (FNMA) and Freddie Mac (FMCC) are separate companies. Bill Ackman invests through Pershing Square, expecting shareholder value to be unlocked. The outcome depends on the terms of government reform as well as business profits.
1. What does a Fannie Mae shareholder own?
Fannie Mae buys mortgages, securitizes them and guarantees payments to MBS investors. In Q2 2026 it earned USD 4.0 billion, with USD 7.6 billion of net revenues and a USD 4.1 trillion guaranty book. Net worth reached USD 116.5 billion. This is a substantial business, but total company equity is not an amount payable to common shareholders. Fannie Mae · Q2 2026 · 29.07.2026
2. How large is Ackman’s stake?
Fannie Mae’s 2025 annual report cites Pershing’s 31 March 2014 filing: 115,569,796 shares, or 9.98% of common stock then outstanding. Including swaps, economic exposure was 11.31%. The issuer explicitly says these figures exclude subsequent trades and that it does not know Pershing’s current ownership. These percentages should not be presented as today’s stake or as Ackman’s personal portfolio. Fannie Mae · 2025 Form 10-K · pp. 195–196
PSH’s newer fact sheet for 30 September 2026 still lists Fannie Mae and Freddie Mac. It confirms continued investment, without providing a current percentage of either issuer’s stock. PSH · September 2026 · p. 1
3. What is Pershing Square’s thesis?
In its February 2026 presentation, Pershing proposes treating Treasury’s senior preferred stock as repaid, exercising Treasury warrants and relisting shares on the NYSE. Conservatorship could initially continue. This is an interested investor’s proposal, not an approved government plan. Pershing Square · 11.02.2026 · p. 56
The fund itself reported FNMA and FMCC share-price declines of 39% and 41%, respectively, in H1 2026 despite maintaining its positive thesis. These are company share-price changes, not Ackman’s own investment return. PSH · H1 2026 · p. 13
4. Why does dilution matter?
At 30 June 2026, Treasury’s Fannie Mae senior preferred stock had a USD 234.2 billion liquidation preference. This is distinct from book equity and debt. Common shareholders rank lower in claims on company value. Fannie Mae · Q2 2026 Form 10-Q · pp. 46, 64
Warrants entitle Treasury to acquire 79.9% of fully diluted common stock. In a simplified illustration, existing holders would retain 20.1%, before further issuance or conversions. Converting Treasury preferred stock could dilute them further; Ackman’s proposal assumes a different treatment of that claim. FHFA · SPSPAs
5. What could change the situation?
Barron’s reported on 20 October that Scott Bessent suggested 2027 or 2028 as a possible window for addressing ownership, while emphasizing protection of mortgage financing costs. This is not a binding conservatorship exit date. Barron’s · 20.10.2026
WMA assessment: signed Treasury–FHFA amendments, preferred-stock treatment, capital rules and future issuance matter most. Ackman’s involvement alone does not establish undervaluation. Without restructuring terms, a simple P/E can mislead because it does not determine existing holders’ future share of earnings. This article is informational and is not an investment recommendation.
Posts reflect the author’s personal views as of publication. They are not investment recommendations.