Michael Burry takes a position in Fannie Mae and Freddie Mac after chart-based bearish view

Michael Burry says he took a position in both Fannie Mae and Freddie Mac in the week before October 11, 2026.

He says both stocks have given back essentially all their gains since Trump's election and formed a head-and-shoulders-and-elbows top, which he reads as pointing to further downside. Burry also says Wall Street's base case is converting the Treasury's senior preferred stock into common stock, which he says would dilute common shareholders by at least 90%. The report gives no size of the position and does not state whether Burry is short or long.