A Sleeping Giant: Opportunity in Fannie Mae

Published on
June 17th, 2020
38 minutes

A Sleeping Giant: Opportunity in Fannie Mae

The Interview ·
Featuring Whitney Tilson and Gabriella Heffesse

Published on: June 17th, 2020 • Duration: 38 minutes

We are now more than a decade past the GFC, and Fannie Mae is finally exiting conservatorship – a legal concept where a guardian oversees the finances of an individual or company. Whitney Tilson, founder and CEO of Empire Financial Research, and Gabriella Heffesse, chief operating officer of ACG Analytics, take a deep-dive into Fannie Mae, the mortgage giant that securitizes just under half of all mortgages in the United States. They analyze the investment opportunity Fannie Mae presents, comparing the junior preferred shares to the common tier equity, and the different risk/reward proposition each level of the capital stack offers. Tilson and Heffesse review the history of Fannie Mae, from its being placed into conservatorship to the "net worth sweep" to the ongoing attempts to implement a "recap and release" plan. In addition, this serves as a timely case study on the multi-year playbook for government bailouts and conservatorship for national champion companies that could once again show up in Washington with outstretched hands and empty pockets. Filmed on June 10, 2020.



  • Kj
    Katherine j.
    21 June 2020 @ 20:54
    Nice to hear about the elephant in the room.
  • TB
    Tobin B.
    18 June 2020 @ 21:35
    Thanks for the talk, but.... when has a government sponsored program ever been run so efficiently that its value increased?
  • JO
    James O.
    18 June 2020 @ 19:02
    Obviously you people have no history of Tilson. Wall Street never ceases to amaze.
  • hb
    huey b.
    18 June 2020 @ 17:41
    This subject is under reported. Whitney Tilson makes some valid points. However this interview really needed to be done my someone else.
  • RM
    Roberto M.
    18 June 2020 @ 15:55
    RV needs to up its quality filter or reduce the volume. Happy with less but better.
  • DN
    David N.
    18 June 2020 @ 14:58
    I thought Whitney's comments and strategy are really interesting. I happen to own a chunk of the jr. preferreds and no common shares. This makes me wonder if it makes sense to split between them. Gabriella knows her sh*t on this topic and I enjoyed her giving Tilson the opportunity to make his case for owning the common. Great job!
  • DS
    Dale S.
    17 June 2020 @ 17:24
    Whitney Tilson is a hack who once called Magic Jack the ‘next Netflix’. Shameless self promoter and disappointed to see him taken seriously.
    • ml
      m l.
      17 June 2020 @ 23:45
      How are you surprised ? If you haven’t noticed the quality in guests deteriorate since Grant left you haven’t been keen on detail... I commented such previously and they banned me from chatting on the platform.
    • AF
      Andre F.
      18 June 2020 @ 02:52
      m l. They banned you from chatting on the platform; yet, here you are chatting on the platform.
    • ml
      m l.
      18 June 2020 @ 13:26
      @andre I complained about such and they unbanned me.
  • KN
    Kevin N.
    18 June 2020 @ 10:41
    Speculations galore! Gives me the office watercooler feels~
  • se
    scott e.
    17 June 2020 @ 16:35
    He's dressed like he is going to have a professional interview while she looks like she just came off of the beach.
    • Ja
      James a.
      18 June 2020 @ 04:20
      hehehe u like that don't you
  • Ja
    James a.
    17 June 2020 @ 13:24
    She interrupts the guest too much. Trying to show off.
    • AF
      Andre F.
      18 June 2020 @ 02:58
      It's not an interview of journalist to expert. It's an exchange of one peer to another. If I recall correctly, Miss Heffesse presented her own take on opportunity in Fannie Mae shortly after Trump's inauguration. I was one of the down votes of your comment but not because I'm a feminist.
    • AR
      Anthony R.
      18 June 2020 @ 03:56
      He goes on and on for minutes at a time with her letting him go... what are you talking about? I've seen her prior presentation and she was sharp there too. If Hugh Hendry looks like a beach bum, no problemo. But if she looks like she's on vacation - OMG! LoL. Come on.
  • AW
    Aaron W.
    18 June 2020 @ 03:45
    The only reason they didn't go bankrupt this year is because the government stimulated $3 trillion, almost all of which supported mortgage payers. Their capital buffer of $200 billion is a joke.
  • WM
    William M.
    17 June 2020 @ 23:24
    too many moving parts to this speculation... yes it's an intriguing speculation but just too complex for most of us...
    • AF
      Andre F.
      18 June 2020 @ 02:48
      It's too complex for you. Please don't speak for others. You know yourself very well; you're less familiar (which should go without saying) with others.
  • DP
    Duane P.
    18 June 2020 @ 02:17
    This is why the government needs to stay out of taking over businesses. What a dumpster fire of a mess.
  • AC
    Aaruran C.
    17 June 2020 @ 21:27
    More women!
  • NR
    Nathan R.
    17 June 2020 @ 17:27
    Barrel, meet Bottom.
  • JS
    Juraj S.
    17 June 2020 @ 13:59
    "Here, get rich by speculating on a stock that might get bailed out". No, thanks, I have some ethics left.
  • PU
    Peter U.
    17 June 2020 @ 09:29
    going to pass on Whitney's presentation