Edge One Capital announces stake in Fannie, Freddie

Edge One Capital said it has built a stake in both Fannie Mae (FNMA) and Freddie Mac (FMCC). The stake was initiated in December 2023 at 75c for Fannie Mae and 67c for Freddie Mac, “based on a deep conviction that the time to end the seventeen-year government conservatorship is now,” the company said in a statement. It added, “Combining Fannie Mae and Freddie Mac into a single, well-capitalized enterprise is another option that would deliver immediate and lasting benefits. By eliminating duplicative infrastructure, consolidating technology platforms, and unifying risk management, the combined entity could operate with greater efficiency and lower overhead. From a capital-raising perspective, a larger, simplified institution with a stronger balance sheet would likely attract broader investor interest and command a lower cost of capital…Conservatorship was a temporary emergency measure. Seventeen years later, it has become an indefensible exception. We have the policy tools, capital framework, and market conditions to return Fannie Mae and Freddie Mac to private ownership while protecting taxpayers and preserving affordability. We must restore market discipline, repair governance, and uphold the fundamental rights of all stakeholders.”