Famed Bear Michael Burry Is Bullish on Fannie and Freddie

Core Viewpoint - Michael Burry, a prominent money manager, holds significant positions in Fannie Mae and Freddie Mac common stock, believing that a re-listing of these housing-finance giants is imminent [1][2]. Company Insights - Burry has expressed a bullish outlook on Fannie Mae and Freddie Mac, citing political and regulatory challenges that must be addressed for a public offering to take place [1][4]. - He personally owns substantial amounts of both companies' common stock and is analyzing the political dynamics and potential valuation in a future sale [3]. - Shares of Fannie Mae and Freddie Mac have seen notable gains, with Fannie Mae rising 3.9% and Freddie Mac climbing 3.1% recently, contributing to over a 15% increase in value this month [3]. Regulatory Considerations - For a public offering to occur, Burry argues that regulators need to relax capital requirements, convert certain preferred shares into common stock, and reduce the government's claim on the companies, as the current claims render common shares "worthless" [4]. - Burry acknowledges that significant challenges remain before an IPO can be realized for both companies [4].