""I underestimated how much exposure Fannie and Freddie ('F2') have to crypto, not on balance sheet, but in their shareholder bases," Ackman said on X."
""There was clearly a lot more leverage to take out in crypto and the recent high-flyer equities themes," Charlie McElligott, a cross-asset strategist at Nomura, wrote in a note to clients Friday."
Bill Ackman and Bill Pulte influenced retail traders to heavily buy Fannie Mae and Freddie Mac, driving their shares to rise more than 500% since Donald Trump's election. Equity market volatility and a severe rout in cryptocurrencies prompted rapid selling by those retail investors. Ackman blamed forced liquidations and margin calls in the crypto market for pressure on the mortgage giants. He said the firms had unexpected crypto exposure through their shareholder bases rather than on balance sheets. Analysts noted substantial leverage among crypto and high-flyer equity investors that amplified declines. Traders monitored Pulte's social-media posts for clues about privatization prospects.
Read at Fortune
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