|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||19.21 - 19.52|
|52 Week Range||12.45 - 19.52|
|Beta (3Y Monthly)||N/A|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
Chipotle Mexican Grill (CMG) is helping Bill Ackman’s Pershing Square outperform the broader markets YTD. The fund has gained 54.5% through August.
(Bloomberg) -- Bill Ackman made a big bet on himself even as some investors were second-guessing the future of his hedge fund, Pershing Square Capital Management. So far, it’s paying off.The billionaire plowed about $500 million into the publicly traded arm of his fund last year, arguing it was significantly undervalued. At the time, Pershing Square Holdings Ltd. was trading at roughly $15 a share.The fund has returned 54.5% on its investments this year through August, fueling a 48% gain for shares of Pershing Square Holdings, which traded Friday at $19.10 in Amsterdam, the highest since January 2016. That translates into about a $200 million gain for Ackman in 2019 on his half-billion-dollar bet, data compiled by Bloomberg show.That’s quite a reversal of fortune. Early last year, Ackman told investors he had to change course after a disastrous bet on Valeant Pharmaceuticals Ltd. and an ill-fated short-selling campaign against Herbalife Nutrition Ltd. Pershing Square was seeking to snap a three-year losing streak, and investors had pulled billions of dollars from Ackman’s private funds.“There was doubt as to whether Bill Ackman would be able to survive,” said Kai Liekefett, partner and chairman of the shareholder activism practice at law firm Sidley Austin LLP. “It looks like he has been focused on the last year or two on fundamental investing. He’s abstained from campaigning and started to find his groove again.”Ackman, 53, is worth $1.8 billion, according to the Bloomberg Billionaires Index. He declined to comment.Pershing Square has rallied along with some of its biggest holdings, including Chipotle Mexican Grill Inc., Starbucks Corp. and Burger King owner Restaurant Brands International Inc. In June, he booked a 64% profit on an investment in Automatic Data Processing Inc., about two years after acquiring a stake in the company.Still, with big gains come big risks. Two of the fund’s best performing positions are mortgage finance companies Fannie Mae and Freddie Mac, which rose this year in anticipation of their government conservatorship ending. A long-awaited Treasury Department report on their future, released Thursday, left the timeline for that vague and key issues unresolved.It had been a brutal stretch for Pershing Square investors, who had seen nothing but losses over the past several years. The fund tumbled in 2015 and again in 2016, driven in large part by Ackman’s bet on Valeant, an investment that cost investors more than $4 billion. Ackman also waged a prolonged short-selling battle against Herbalife, a losing billion-dollar bet that brought him into a public conflict with Carl Icahn, who eventually became the company’s biggest shareholder.Read more: Icahn says epic Herbalife battle with Ackman was ‘a good fight’Ackman was poised for a rebound last year, but a pre-Christmas market collapse wiped out an 11% gain and the fund ended the year down 0.7%.One reason Ackman cited for investing in his fund was a persistent discount between Pershing Square’s share price and its net asset value, or NAV. The discount was about 25% in May 2018, when he announced that he would start buying shares. Despite the fund’s recent gains, the discount to NAV has widened to almost 30%, and Pershing Square has said it plans to take advantage by continuing to repurchase stock.It’s “an extraordinary buying opportunity, and we have ample free cash,” Ackman said in a letter to shareholders last month.Pershing Square Holdings’ performance this year could prove lucrative for Ackman in other ways. Last week, the fund’s NAV climbed high enough that, if the gains hold through the end of the year, he’ll be able to collect performance fees for the first time since 2014.In a March letter, Ackman attributed the year’s strong start to a number of factors. The nature of his publicly traded fund meant he no longer had to focus on raising money, and the smaller, more focused investment team was paying dividends. He has also turned away from short-selling strategies, which previously weighed on performance.In January, Ackman married Neri Oxman, a professor at the Massachusetts Institute of Technology. The former Israeli Air Force lieutenant gave birth to their daughter in the spring. At an investor conference in April, Ackman gave another possible reason for his recent success: “Maybe it has something to do with being loved and getting married?”(Updates with Fannie Mae and Freddie Mac in eighth paragraph.)\--With assistance from Andrew Heathcote.To contact the reporters on this story: Tom Maloney in New York at email@example.com;Scott Deveau in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Pierre Paulden at email@example.com, Peter Eichenbaum, Steven CrabillFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Bill Ackman’s Pershing Square Holdings netted gains of 3.5% in August, in sharp contrast to the losses posted by the major stock benchmarks in the month.
During its latest 13F filings, Bill Ackman’s Pershing Square Holdings revealed its new stake in Warren Buffett’s Berkshire Hathaway.
Bill Ackman’s Pershing Square Holdings is having a stellar 2019. It's seen a year-to-date gain of 48.9% as per its letter to shareholders.
Activist investor Bill Ackman’s Pershing Square Capital had disclosed a position in Warren Buffett’s Berkshire Hathaway. But Pershing didn’t buy any FedEx stock in the second quarter, according to a form it filed with the SEC.
According to the regulatory filing from Bill Ackman’s Pershing Square Capital, the fund has taken a new stake in Berkshire Hathaway (BRK.B).
Once known for his aggressive activist investments, Bill Ackman’s latest moves have been more conservative. His latest? A bet on Warren Buffett’s Berkshire Hathaway conglomerate..
Billionaire U.S. investor William Ackman has long described how Warren Buffett, often called the greatest stock picker ever, has influenced his career. Ackman's Pershing Square Capital Management bought 3.5 million Berkshire Hathaway B shares during the second quarter, the fund manager said in a regulatory filing on Wednesday. At Wednesday's close, the investment would be worth roughly $686 million.
FedEx stock rose 2.5% Tuesday, better than the market’s gain as investors attempted to triangulate what’s next for activist investor Bill Ackman.
Through a letter to clients, Bill Ackman’s Pershing Square fund announced that it exited its positions in United Technologies and ADP.
Activist investor Bill Ackman has exited his position in United Technologies stock. The move could be another sign that United’s planned merger with Raytheon will likely proceed on schedule.
William Ackman's Pershing Square Capital Management has sold its positions in Automatic Data Processing Inc and United Technologies Corp and built a new position in a company whose name has not been disclosed, a source familiar with the matter said on Monday. Ackman announced the exit from ADP in a letter sent to clients and seen by Reuters on Monday and had earlier told analysts about the decision to sell out of United Technologies, the source said. A spokesman for Pershing Square declined to comment on either sale or disclose the name of the company in which the firm is building a position.
Chipotle's impressive second-quarter results propelled its stock to an all-time high. The stock was up 84.2% year-to-date as of July 31.
The fund sold $58.1 million of the restaurant chain’s stock near the end of June. Chipotle stock has surged nearly 70% so far this year.
The activist investor’s closed-end fund, Pershing Square Holdings, trades at a wide discount to its net asset value despite strong gains in the stocks it holds.
William Ackman, who runs the activist hedge fund Pershing Square Capital Management LP, contacted United Technologies' CEO Greg Hayes shortly after the deal was made public Sunday, according to sources speaking to the Reuters news agency and providing them with the correspondence. Ackman, whose fund owns around 0.67% of United Technologies, had previously supported the group's plans to split into three separate businesses. "We are extremely concerned that such a transaction will significantly lower the business quality of pro-forma United Technologies' aerospace business, and, to make matters worse, will be accomplished through the highly dilutive issuance of large amounts of United Technologies stock," the Ackman read.
Billionaire investor William Ackman's activist hedge fund Pershing Square Capital Management LP is opposing United Technologies Corp's planned $120 billion aerospace merger with defense contractor Raytheon Co, a person familiar with the matter said on Tuesday. Ackman wrote an email to United Technologies CEO Greg Hayes early on Sunday morning to express his concerns about the proposed deal after reading press reports about it, the source said. The fund manager, whose firm owns roughly 0.67% of United Technologies, had previously supported the company in its plans to split into three businesses - aerospace, Otis elevators and Carrier air conditioners.