Michael Burry bets big on Fannie Mae and Freddie Mac IPOs, citing strong fundamentals and political momentum.

Michael Burry, known for predicting the 2008 crisis, says he holds major stakes in Fannie Mae and Freddie Mac, betting on their upcoming IPOs. He expects initial public offerings to price shares at 1 to 1.25 times book value, with potential gains to 1.5 to 2 times book value within two years. Burry cites political momentum, improved capital reserves, and the firms’ central role in the U.S. housing market—backing 62% of mortgages—as reasons for optimism. Despite regulatory hurdles and concerns over readiness, he believes IPOs could unlock growth. Shares rose following his post, reflecting growing investor interest.