Here's Bill Ackman's Presentation On How You Can Make An Insane Amount Of Money By Betting On Fannie Mae

Activist investor Bill Ackman, the CEO of Pershing Square Capital Management, is bullish Fannie Mae.

Ackman gave a 110-slide presentation at the 19th annual Sohn Conference yesterday detailing why he's bullish on the government-controlled mortgage giant.

According to Ackman, the potential return is 10-fold.

Fannie and Freddie needed massive bailouts amid the financial crisis, but have in recent quarters become wildly profitable again. And a number of hedge funders have been bullish for awhile.

Ackman's Pershing Square owns 115,569,796 shares of Fannie and 63,505,693 shares of Freddie Mac.

As Ackman puts it, this investment is like "owning a royalty on the housing finance market."

Pershing Square proposes a plan to reform the GSEs, rather than liquidation of them.

"The best way to maintain widespread availability and affordability of the 30-year, fixed-rate, prepayable mortgage and provide substantial profit to the taxpayer is to reform the GSEs," his presentation said.

Ackman's recommendations include, increasing capital requirements for GSEs, eliminating the fixed income arbitrage business, subject GSEs to increased regulatory oversight and develop appropriate compensation and government policies.

We've included a copy of his presentation.