Bill Ackman

Bill Ackman

Last Update: 08-15-2016

Number of Stocks: 9
Number of New Stocks: 0

Total Value: $7,513 Mil
Q/Q Turnover: 0%

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

Bill Ackman Watch

  • Herbalife: The Big Short Part 2

    The recent Hollywood financial blockbuster “The Big Short” may have a sequel on its hands.

    All the elements are there: the stubborn fund manager in Bill Ackman (Trades, Portfolio) who will not pull out of the short position no matter what, the irate clients trying to get out while they still have their shirts and the revelation of wrongdoing thrown in the face of the market with little to no reaction.


  • Francis Chou Adds to 2 Positions in 2nd Quarter

    During the second quarter, Francis Chou (Trades, Portfolio) of Chou Associates Management added 48.11% and 38.77% to its positions in Valeant Pharmaceuticals International Inc. (NYSE:VRX) and Sears Holdings Corp. (NASDAQ:SHLD). As the stock prices continue to decline, the companies offer investing opportunities. The above transactions align with Chou’s strategy of investing in companies with depressed prices.

    Established in 1986, the Chou Associates Fund seeks long-term capital growth by investing in undervalued U.S. and Canadian securities. As mentioned in its recent prospectus, the fund analyzes the company’s balance sheet and common financial metrics: profitability, growth potential and intrinsic value. While the manager has a limited number of positions, Chou reduces the portfolio risk by investing in companies with high margins of safety.


  • Valeant Misses 2nd Quarter Estimates

    Valeant Pharmaceuticals (NYSE:VRX) reported its second quarter earnings on Aug. 9. The second quarter earnings report was also the second report for new CEO Joseph Papa, who took over the company in May.

    A leading holding for many hedge funds, Valeant experienced a number of legal issues regarding its drug pricing strategies at the end of 2015 that eventually led to the company’s new executive management. Under the new management, the company is continuing to struggle. Since Papa took over, the stock is down 20% and for the year the stock is down 75%. Currently, the stock is selling for about $27.


  • Ackman Raises $1.4 Billion Selling Entire Stake in Canadian Pacific Railway

    Bill Ackman (Trades, Portfolio) is selling off 14 million shares of Canadian Pacific Railway Ltd. (NYSE:CP)(TSX:CP) – a stock making up about a fifth of his equity portfolio – ending one of his big turnaround plays.

    Unloading the shares will raise about $1.4 billion for Ackman’s hedge fund, Pershing Square Holdings, which suffered a 19% net loss year to date, nearly matching its worst-ever 20.5% loss last year. The Canadian Pacific transaction comes on a string of stock sells Ackman made in recent months, more than halving his position in Zoetis (NYSE:ZTS) – one of his three profitable positions in 2015 – in May and July, reaping $1.1 billion, and reducing holdings in Mondelez (NASDAQ:MDLZ) and Air Products (NYSE:APD) in the first quarter.


  • Can You Disagree With Yourself?

    One of the most important tools that we can have as investors is the ability to challenge our own ideas and conclusions. We live in an ever-changing world and to think that our conclusions should be excluded from this phenomenon is a little naïve.

    One of Charlie Munger (Trades, Portfolio)'s most celebrated and recommended books is "Influence: The Psychology of Persuasion" by Robert Cialdini. While the book covers and expands on six biases, I want to touch on one of the hardest to deal with from the list: consistency bias.


  • 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.


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