Michael Burry Is Betting Big on Freddie Mac Stock Ahead of a Relisting. Should You?

Core Viewpoint - Michael Burry, a well-known hedge fund manager, is investing in Freddie Mac and Fannie Mae, anticipating a potential relisting of their stocks sooner than expected [1] Group 1: Market Conditions - The mortgage market is showing signs of improvement, with Freddie Mac's Primary Mortgage Market Survey indicating a decrease in the 15-year fixed rate to 5.44% from 5.51%, down from 5.96% a year ago, providing a positive impact on the housing market [2] Group 2: Freddie Mac's Performance - Freddie Mac, a government-sponsored enterprise, is currently trading around $11, reflecting a year-to-date increase of 236% and a 52-week increase of 317%, indicating a significant recovery [4] - The company has a market capitalization of approximately $7 billion, trading at 0.06x price-to-sales compared to a sector median of 3.02x, and at 0.54x price-to-cash-flow versus a sector median of 9.69x, suggesting it is undervalued relative to its peers [5] - In September 2025, Freddie Mac reported sales of $33 billion, with a sales growth of 1.82% from the previous quarter, and a net income of $2.7 billion, up 16.17% quarter-over-quarter, indicating strong profitability and operational leverage [6]