Bill Ackman, a billionaire hedge fund manager, is using his 1.5 million followers on social media platform X to try to influence President-elect Donald Trump. Ackman has been vocal about his plan to have the government exit its positions in Fannie Mae and Freddie Mac, two government-sponsored enterprises that have been owned by the government for over a decade.
Ackman’s approach is reminiscent of his previous “transactional activism” playbook, where he would push companies to take actions that would boost their stock prices. However, this time, Ackman is trying to get Trump to act in accordance with his wishes. He has not given up hope and expects that the new administration will get the job done.
Ackman’s strategy relies on social media, which has become a preferred medium for reaching Trump. His X account has gained significant traction, making him one of the most powerful voices in business and politics. The billionaire plans to go public with a more detailed presentation of his thesis next week.
The implications of Ackman’s plan are significant, as it could impact the fortunes of shareholders in Fannie Mae and Freddie Mac, including himself. However, the details of the plan get complicated quickly, and technocrats argue over issues such as liquidation preferences and credit risk transfer instruments.
Despite the complexity, many in Trump’s orbit like the idea of releasing the GSEs in theory. The big question is whether Ackman can persuade the president that the government’s fiscal balance should be considered to have already been repaid in full.
Source: https://www.axios.com/2025/01/06/bill-ackman-trump-fannie-mae