Fannie, Freddie Soar as Ackman Says They’re ‘Stupidly Cheap’ (3)

Shares of Fannie Mae and Freddie Mac pared a months-long slide after Bill Ackman, who has bet heavily on the companies, called the mortgage-finance giants “stupidly cheap.”

Fannie rose 51% in Monday trading, the steepest one-day jump since August 2009. Freddie rallied 47%, the stock’s biggest climb since March 2013.

Over the weekend, Ackman, who’s been pitching the White House on plans for releasing the companies from government control, said in a post on X that Fannie and Freddie offered “asymmetry at its best. They could be a 10X and it could happen soon.” ...