Bill Ackman urges investors to ignore Iran conflict and buy Fannie and Freddie, stocks jump

In a late-Sunday X post, Bill Ackman told investors to stop fearing the ongoing Iran war and to buy shares of Fannie Mae and Freddie Mac, describing the conflict as a one-sided war that would conclude well for the U.S. and the world. He argued that the two government-sponsored mortgage enterprises were trading at "stupidly cheap" prices and could deliver outsized returns. The next day, Fannie Mae surged as much as 41% and Freddie Mac climbed up to 34%, marking their largest single-day jumps since a 2023 privatization discussion.

Ackman's Pershing Square Capital Management holds more than 210 million combined shares, making it the top common shareholder of both firms. The rally occurred on the last trading day of Q1 2026, a timing that benefits hedge-fund performance reporting. While the valuation gap—each company earning more than twice its market cap—appears striking, critics note the long-standing uncertainty around any potential IPO and warn that a rushed privatization could raise borrowing costs. Ackman later softened his tone, reminding investors to limit exposure due to the uncertain outcome.