Famed investor Michael Burry, best known for his prescient bet against the housing market portrayed in “The Big Short,” has revealed he holds “sizable positions” in mortgage finance giants Fannie Mae (OTC:FNMA) and Freddie Mac (OTC:FMCC).

Burry Outlines Bullish Case For Fannie And Freddie

According to a Reuters report, Burry anticipates the companies will see significant upside if they return to the public markets, declaring the formerly distressed entities “Toxic Twins No More” in a recent analysis.

Writing in his “Cassandra Unchained” newsletter, Burry outlined a bullish case for the government-sponsored enterprises (GSEs). He projects that an initial public offering (IPO) could price shares between 1 and 1.25 times book value.

Once listed, he expects the shares to trade at 1.5 to 2 times book value within ...