Core Viewpoint - Fannie Mae, under federal conservatorship since 2008, is experiencing a significant rise in stock value due to speculation about potential privatization and release from government control, with notable investor Michael Burry expressing strong support for the stock as a long-term hold [3][5][9]. Company Background - Fannie Mae, established in 1938, is a government-sponsored enterprise that provides liquidity and stability in the U.S. housing market by purchasing mortgages and bundling them into mortgage-backed securities (MBS) [2]. - The current market capitalization of Fannie Mae stands at $12.4 billion [2]. Recent Developments - Michael Burry has publicly endorsed Fannie Mae as a stock worth holding for three to five years, indicating high conviction in its potential [3][4]. - Fannie Mae's shares have surged over 251.97% year-to-date, driven by speculation regarding the Trump administration's potential move to privatize the company [8][11]. Speculation on Privatization - The Trump administration is reportedly considering a public offering of Fannie Mae and Freddie Mac, which could value the companies at over $500 billion and raise approximately $30 billion by selling 5% to 15% of their shares [11][12]. - The Federal Housing Finance Agency (FHFA) has indicated that the government will remain the largest shareholder even after any potential offering [12]. Analyst Sentiment - Wall Street analysts exhibit caution regarding Fannie Mae's stock after its significant rally, with a consensus rating of "Hold" among five analysts covering the stock [13]. - Wedbush Securities recently upgraded Fannie Mae to "Outperform" and raised its price target to $11.50, reflecting optimism about potential steps toward recapitalization and exiting conservatorship [14].