Investing.com -- Shares of government-backed home loan giants Fannie Mae (OTC:FNMA) and Freddie Mac (OTC:FMCC) experienced a slump on Thursday, even as Bill Ackman from Pershing Square (NYSE:SQ) put forward a positive argument for the stocks, outlining how they could emerge from US conservatorship in the upcoming years.
Despite this downturn, the stocks, known for their recent volatility, have seen an almost 300% increase since the election victory of Donald Trump.
On Thursday, the shares of both Fannie and Freddie saw a decrease of up to 19%. Ackman, in his presentation, proposed a plan for the restructuring of these entities.
He suggested that this should take place in three consecutive phases. Despite the recent slump, the stocks have shown a significant rise in value since the last US presidential election, demonstrating their potential for growth.
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