Heavy Trading in Fannie and Freddie Stocks on Friday

There was heavy trading in Fannie Mae and Freddie Mac’s common stock on Friday, on the news that Pershing Square Capital Management LP bought significant stakes in both firms.

A filing by Pershing Square revealed it bought a 9.9% stake in Fannie Mae and a 9.7% stake in Freddie Mac. That news came out after Fairholme Capital Management made an offer to the government to acquire the mortgage-backed securities business of both firms.

Freddie Mac closed above $3 per share for the first time since May, at $3.08, up 6.21%. Fannie Mae closed at $3.30, up 7.84%.

As for the Mortgage Industry Equity Composite, only 10 of the 17 stocks finished higher even as Janet Yellen indicated there would not be a quick end to bond purchases if she is confirmed as Federal Reserve chairwoman.

Ellie Mae led the gainers among MIEC stocks, up 1.51%, followed by Radian Group, up 1.32%.

Bank of Hawaii had the largest percentage loss, down 1.32%, followed by Astoria Financial, down 0.67%.