Hedge Funders' Beloved Fannie And Freddie Trade Is Getting Demolished Today

Shares of mortgage giants Fannie Mae and Freddie Mac are cratering right now.

Fannie is down 40% and Freddie is down 38% after U.S. lawmakers released a plan for reforming the government-operated entities.

These stocks have been favorites of hedge fund managers as of late, with some investors hoping the stock will eventually start to return dividends to shareholders instead of the U.S. Treasury.

Here's Fannie Mae: