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Bill Ackman Comments on Canadian Pacific Railway Limited

- By Holly LaFon

In our August 26, 2016 Investor letter, we reported the sale of our remaining 9.8 million shares of CP on August 4, 2016, approximately five years from the inception of the investment. During the course of our investment, CP (CP)'s share price increased four times, its operating performance went from worst to nearly tied for first with Canadian National, and its credit rating improved from a weak Baa-/BBB- to a strong Baa+/BBB+. While critics often accuse activists of being short-term investors focused primarily on stock buybacks and dividends, CP is a paradigmatic example of the long- term sustainable business performance enhancements and shareholder value creation we have achieved in our core activist holdings.

During our period of ownership, Canadian Pacific's total shareholder return, including dividends, was 318.9%.

From Bill Ackman (Trades, Portfolio)'s Pershing Square 2016 annual report.

This article first appeared on GuruFocus.