$300 billion plan for Fannie Mae, Freddie Mac? Billionaire hedge fund manager Bill Ackman reveals three-step reforms
Billionaire hedge fund manager and Pershing Square Capital Management founder and CEO Bill Ackman on Wednesday, November 19, 2025, unveiled his $300 billion three-step plan, highlighting a way for American taxpayers to profit from the listing of government-owned Fannie Mae and Freddie Mac.
Fannie Mae and Freddie Mac are government-sponsored companies (GSEs) that the federal government, led by U.S. President Donald Trump, aims to list on benchmark stock indices through initial public offerings (IPO).
What is Bill Ackman’s plan?
Billionaire investor and Pershing Square Capital CEO Bill Ackman advised in a recent Fannie Mae and Freddie Mac relisting presentation that this was not the right time to sell some of the Treasury’s GSE shares in an IPO.
Under Ackman’s plan, the U.S. Federal Housing Administration (FHFA), along with the federal government’s Treasury Department, could pursue three steps that would enable the Trump administration to achieve its GSE goals.
The report also argued that keeping the GSEs in conservatorship removes timing pressure, maximizing option while giving the Treasury Department and FHFA time to carefully plan an exit from the company that does not disrupt mortgage markets.
“I completely agree with the President’s goals here, as he achieves his goals through a slow and steady approach, which I think is pretty consistent with what the Treasury Secretary would like to see,” Bill Ackman said. Fox Business on Wednesday.
Ackman’s three-step process
Bill Ackman said the federal government must first recognize how much money these companies are losing to shareholders, so for a successful IPO round they need to make it attractive to those same people.
“These companies lost a lot of money for shareholders, so before you (the government) does the biggest IPO of all time, you want shareholders to be excited about what’s going on, otherwise the IPO will fail,” Bill Ackman said in the interview.
In the report, Pershing Square Capital recommended opening accounts for redemption of Fannie Mae and Freddie Mac Senior Preferred Stock.
Second, the government should exercise the Treasury’s 79.9% equity warrants in both companies for $0.00001 per share, and then finally relist both Fannie Mae and Freddie Mac shares on the New York Stock Exchange (NYSE).
The report also stated that these three steps will allow the Trump administration to fulfill its November 2025 timing commitment to create value for shareholders.
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