Hedge Funds
The end of the Trump administration is the end of the best hope for hedge-fund investors in a long and painful trade: Betting that Fannie Mae and Freddie Mac would one day be returned to private hands. A long list of investors has bet that policy makers would eventually privatize the companies, and that once that path became clear, the value of the shares in these companies would increase dramatically. Most hedge funds hold preferred shares that carry a dividend.

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