Bill Ackman

Bill Ackman

Last Update: 07-08-2016

Number of Stocks: 9
Number of New Stocks: 1

Total Value: $8,853 Mil
Q/Q Turnover: 5%

Countries: USA
Details: Top Buys | Top Sales | Top Holdings  Embed:

Bill Ackman Watch

  • The Battle of the Billionaire Gurus – and the Future of Herbalife

    Two of the great investing names of our times, Carl Icahn (Trades, Portfolio) of Icahn Capital Management LP and Bill Ackman (Trades, Portfolio) of Pershing Square Capital Management, L.P. are both friends and bitter rivals. That rivalry arises out of their diametrically opposed views about Herbalife, the nutritional supplements company. And more specifically, about the compensation of independent distributors who sell those products to consumers.


    Bill Ackman and Carl Icahn

      


  • Bill Ackman Comments on Herbalife in 2nd Quarter Conference Call

    During his conference call this morning, Bill Ackman (Trades, Portfolio) presented on Herbalife’s settlement with the Federal Trade Commission. After summarizing background information of the case, Ackman discussed the implications of the settlement based on three complaint categories.


    On July 15, the FTC filed a complaint for a permanent injunction and relief against Herbalife Ltd. (NYSE:HLF), a company in which Ackman has a large short position, charging the company with several illegal business operations. The FTC categorized these complaints into three groups: unfair practices to customers, income misrepresentation and false or unsubstantiated claims from retail sales. According to the presentation, Ackman believes the company promoted an unrealistic compensation structure: Several “distributors” claimed in their testimonials that by working at Herbalife, their monthly salaries allowed them to live an extraordinary lifestyle.

      


  • Bill Ackman’s Portfolio Returns Diminish as Stock Prices Decline

    Activist investor Bill Ackman (Trades, Portfolio) founded the Pershing Square Capital Management Fund in 2003. With a simple investing approach, the fund manager seeks value by buying stocks at cheap prices and selling them once they reach their fair values. Despite having high returns in 2014, the fund experienced poor returns as of July 2016.


    For the month of June, Ackman’s fund realized a gross performance of -3.0% and a net performance of -3.1%. The fund’s year to date returns have fallen in the red: the gross return YTD is -20.4% and the net return year to date is -21.1%. The decline in stock prices likely tormented the fund manager’s portfolio.

      


  • Pershing Square's Statement Regarding Herbalife

    New York, July 15, 2016 //- Pershing Square Capital Management, L.P. (“Pershing Square”) today released the following statement:

      


  • Learn from Bill Ackman’s Mistakes

    Learn from Bill Ackman (Trades, Portfolio)’s Mistakes


    As of Friday’s close, July 15, 2016, Bill Ackman’s Pershing Square Holdings (PSH.AS, PSHZF) is down 41.3% since its IPO in October of 2014. Throughout the same timeframe, the S&P 500 is up 7.09%. Ackman has been a great portfolio manager and generated large gains of about 20% per year leading up to his IPO and gained 40.4% in 2014. Although he has experienced great success in the past, recently there are aspects of his investing that remind me of the most common mistakes that I have seen from amateur investors over my years as a stock broker. Let’s take a look at some of these characteristics that have helped lead to the large losses and use them as a learning experience.

      


  • Bill Ackman's Herbalife Settles With FTC, Stock Is Undervalued

    Bill Ackman (Trades, Portfolio)’s Pershing Square sustained another strike Friday when a long-time short, nutrition direct seller Herbalife (NYSE:HLF), settled with the FTC for $200 million if it made certain changes to its business model, finally laying to rest his allegation that it is a pyramid scheme.


    Ackman initially made a $1 billion short call against the company in 2012, sending its price spiraling down by more than half. His continued campaign against the stock and the FTC investigation enduring since 2014 have left the stock in limbo.

      


  • Bill Ackman: Herbalife Bilking People, NBC Helping Valeant Short-Seller Make Money

    Bill Ackman (Trades, Portfolio) spoke to CNBC this morning on the phone. He talked about the recent public short seller attack by Andrew Left on his holding Valeant (NYSE:VRX) and why he stayed short Herbalife (NYSE:HLF).   


  • Ackman Sells Nearly a Quarter of Stake in Zoetis

    Bill Ackman (Trades, Portfolio) of Pershing Square Capital Management LP reduced his stake in Zoetis Inc. (NYSE:ZTS) for the second time this year with the sale of 6,081,841 shares for $47.69 per share on July 7.


    Ackman sold more than 40% of his stake in May.

      


  • CEO of Valeant Joseph Papa Makes $5 Million Insider Buy

    The CEO of Valeant Pharmaceuticals (NYSE:VRX), Joseph Papa, has dropped almost $5 million on 202,000 shares of the company, according to insider filings.


    Papa bought the stock on June 10, paying $24.48 per share. Valeant's stock price has fallen almost 90% over the past year and has traded for as high as $264.

      


  • Ackman Pared His Stake in Mondelez International In 1st Quarter

    Bill Ackman (Trades, Portfolio) of Pershing Square Capital Management LP made transactions in four stocks in the first quarter, reducing his holdings in two and adding to his holdings in the others.


    Ackman pared his stake in Mondelez International Inc. (NASDAQ:MDLZ), a food processing company based in Deerfield, Illinois, by more than 47%. Ackman sold 20,424,117 shares for an average price of $40.73 per share. The deal had a -7.35% impact on Ackman’s portfolio.

      


  • Bill Ackman Asks Charlie Munger to Be Nicer About Valeant

    Some correspondence between Bill Ackman (Trades, Portfolio), a major Valeant (NYSE:VRX) shareholder, Warren Buffett (Trades, Portfolio) and Charlie Munger (Trades, Portfolio) surfaced this week in a slew of documents the U.S. Senate committee investigating drug price gouging has released.


    In the email (below), Ackman compares Valeant to Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B) in an effort to sway Munger to meet with him and CEO Michael Pearson to learn why the company isn't so bad. Munger has said Valeant is "ITT and Harold Geneen come back to life, only the guy is worse this time,” and called it "deeply immoral" and "a sewer."

      


  • Pershing Square's, and Ackman’s, Less Talked About Positions

    If there’s one hedge fund that has grabbed more headlines than any other this quarter it's Pershing Square, and specifically, its CEO Bill Ackman (Trades, Portfolio). The activist investor has long drawn the spotlight, famously with his so-called billion-dollar short position in Herbalife Ltd. (NYSE:HLF) and, more recently, his troubled long in Valeant Pharmaceuticals International Inc. (NYSE:VRX).


    Both positions have lost the company a large sum of money (at least, that is, on paper) across the last few years and continue to do so. You don’t get to $1 billion without some competence, however. The high-profile hits aside, Ackman – and Pershing Square – has a solid portfolio of assets. Here’s a look at a few of the fund’s largest holdings and how they have performed over the last couple of years.

      


  • Bill Ackman Slashes Position in Zoetis

    Guru Bill Ackman (Trades, Portfolio) and founder of Pershing Square Capital Management LP slashed his position in Zoetis Inc. (NYSE:ZTS) on May 9.


    Zoetis has a market cap of $22.85 billion, a P/E ratio of 69.59, an enterprise value of $26.67 billion, a P/B ratio of 19.64 and a dividend yield of 0.77.

      


  • Is Seasonal Investing the Best Way to Approach the Market?

    What happens when the markets stop making sense? How do you even begin to analyze which stocks to invest in?


    Over the last two years, markets have defied conventional theories, rallied even when the global economies appeared to be struggling and in the process managed to sway several investors into believing that everything was on a roll.

      


  • Bill Ackman Comments on Zoetis Inc.

    Zoetis (NYSE:ZTS) is the only large, independent, publicly traded animal health company in the world. The company has a market capitalization of ~$23 billion and $5 billion in revenue. The Pershing Square funds currently own a 5.0% economic stake in the company, down from 8.6% as a result of a recent block sale.


    During the first quarter, adjusted revenue grew 6%. The Companion Animal segment was the star of the quarter, with growth of 20% driven by new product launches. Livestock revenue growth was nominal at 1% due to competition in U.S. swine products and mild U.S. weather.

      


  • Bill Ackman Comments on Restaurant Brands International

    Restaurant Brands (NYSE:QSR) reported another strong quarter of underlying earnings with its results for the first quarter of 2016. The company continues to deliver strong same-store-sales growth and net unit growth at both concepts and continues to improve Tim Hortons’ cost structure.


    Same-store-sales this quarter grew 5% at Burger King and 6% at Tim Hortons as continued new product innovation, such as Grilled Dogs at Burger King and croissant breakfast sandwiches at Tim’s, drove improved results. Same-store-sales growth at Burger King U.S. was 4%, which highlights the progress the company is making in narrowing the sales gap between Burger King and its key U.S. competitors. Net units grew 4% at both concepts and management indicated that they have a strong development pipeline for new stores this year. As a result, Restaurant Brands’ organic revenue growth was 6%.

      


  • Bill Ackman Comments on Platform Specialty Products Corp

    Platform (NYSE:PAH) reported modestly improved underlying earnings due to strong cost synergies from its recent acquisitions, which were offset by weakness in several key end markets and an increase in corporate costs. Reported earnings were lower than the prior year due to significant headwinds from FX. Still, earnings beat expectations leading to a substantial increase in PAH’s stock price.


    Platform’s organic revenue declined 1% as Ag Solutions was flat and Performance Solutions was down 2%. Ag Solutions achieved solid growth in Europe and Latin America, which was offset by market weakness in North America. Performance Solutions’ organic revenue declined primarily due to weakness in the electronics market in Asia. Although several of the company’s end markets have softened recently, Platform’s underlying results continue to outpace its competitors. Platform’s organic EBITDA was up slightly, as the benefit of cost synergies more than offset the increase in corporate costs. In Ag Solutions, organic EBITDA increased 3%, as higher cost synergies more than offset the increase in corporate expenses. In Performance Solutions, organic EBITDA declined 2%, as cost synergies were more than offset by the increase in corporate expenses. Reported EBITDA declined 6% due to the negative headwinds from FX. As a result, EPS declined nearly 30% due to the negative impact from financial leverage.

      


  • Bill Ackman Comments on Nomad

    Nomad (NYSE:NOMD)’s acquisitions of Iglo and Findus created the leading branded frozen foods business inEurope, ~2.7 times the next largest competitor. It is the market leader in the UK, Italy, Germany, France, Spain, and Sweden. The business is stable, high-margin, and cash-flow generative with low capex requirements and modest cash taxes. Nomad purchased both assets for a total of €3.3 billion or ~8 times EBITDA post-synergies. In 2015, pro forma revenue was €2.1 billion, with €345million EBITDA and €0.95 EPS ($1.06), excluding synergies which are currently estimated at €43 to €48 million.


    Recent performance has shown weak top-line trends, with like-for-like sales down 5% for 2015, the result of Iglo’s historic strategy which was to disproportionately invest behind new frozen food categories, at the expense of core offerings, in the hope of driving incremental growth. Recently, Nomad has shifted its focus back to its core offerings. This shift will take some time to impact the Company’s financial performance, but ultimately we believe it will result in renewed growth.

      


  • Bill Ackman Comments on Mondelez

    We continue to believe that the opportunity for productivity improvement and margin expansion at Mondelez (NASDAQ:MDLZ) is significant. In February, the company announced a 2018 operating margin target of 17% to 18%. This target reflects some of the steps the company has taken over the last several years to improve its supply chain, reduce portfolio complexity, and rationalize overhead while increasing advertising and promotion. While we believe that the business is capable of higher margins, if Mondelez were to only achieve management’s target, the business would be worth significantly more than its current public market valuation.


    On April 27th, Mondelez reported first quarter 2016 results. Underlying organic growth continued its sequential acceleration, increasing about 3% in the quarter with volume up slightly. This was the best quarter for volume in two years, with growth in developed markets and in emerging markets excluding Brazil and Russia, both of which are in recession. Global growth for the snacks categories in which Mondelez participates remains healthy despite short-term demand weakness in some emerging economies. Management was confident about continued volume growth for the full year, citing the returns on their incremental brand investments and the closing of price gaps with competitors. Operating margins expanded by nearly 300 bps to just under 16% driven primarily by gross margin productivity including a substantial contribution from improvements in Mondelez’s manufacturing base.

      


  • Bill Ackman Comments on Herbalife

    On May 5th, Herbalife (NYSE:HLF) reported improved financial performance for the first quarter of the year and updated their regulatory disclosures as follows:


    “The Company is currently in discussions with the FTC regarding a potential resolution of these matters. The possible range of outcomes include the filing by the FTC of a contested civil complaint and further discussions leading to a settlement which would likely include a monetary payment and injunctive and other relief. The Company is cooperating with the investigation and at this time it is difficult to predict the timing, and the likely outcome, of these matters. The discussions with the FTC are in the advanced stages, but there are still a number of material open issues that could preclude reaching final agreement. If discussions with the FTC do not continue to progress, it is likely that litigation would ensue. Although we are confident in our legal position, litigation outcomes by their very nature are difficult to predict and there can be no assurance of a particular outcome.

      


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