Bill Ackman

Bill Ackman

Last Update: 04-22-2016

Number of Stocks: 8
Number of New Stocks: 0

Total Value: $12,460 Mil
Q/Q Turnover: 0%

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

Bill Ackman Watch

  • Ackman to Testify About Valeant Before Senate

    Activist investor Bill Ackman (Trades, Portfolio) will testify before the Senate Special Committee on Aging Wednesday regarding his involvement with Valeant Pharmaceuticals (NYSE:VRX), along with outgoing CEO Michael Pearson, just a day after Joseph Papa of Perrigo (NYSE:PRGO) was announced as Pearson’s replacement.

    The hearing titled “Valeant Pharmaceuticals’ Business Model: the Repercussions for Patients and the Health Care System” will also include former Valeant CFO Howard Schiller, who was asked to resign last month due to improper conduct that led to misstatement of financial results.  


  • Why Bill Ackman Is Cutting Back on Canadian Pacific

    Bill Ackman (Trades, Portfolio) has been cutting back on Canadian Pacific (NYSE:CP) by selling a massive amount of shares as shown by GuruFocus' Real Time Picks. The move is somewhat surprising because on the recent quarterly call, the firm’s outlook was very bullish:


      


  • With Ackman Down It May Be Right Time to Back Him

    Pershing Square Holdings trades at a 10% discount to its NAV ($15.73 to $17.43). Historically, the discount has averaged around 5% since the IPO. The holding IPO’ed in 2014.


    It’s not uncommon for holding companies of star managers to trade at a slight premium when they go on a winning streak. Ackman is very much not on a winning streak. In fact, he is getting taken to the cleaners in a very public way because of his Valeant (NYSE:VRX) investment.

      


  • Canadian Pacific Ends Plans to Acquire Norfolk Southern

    This week Canadian Pacific (NYSE:CP) announced it would no longer be continuing its acquisition bid for Norfolk Southern (NYSE:NSC). After repeated refutes from Norfolk Southern, Canadian Pacific was preparing to bring the acquisition proposal to Norfolk Southern’s shareholders.


    A number of factors influenced Canadian Pacific’s decision to withdraw the takeover plan, however, one of the main influencing factors was Norfolk Southern’s repeatedly adamant view that its business strategy was successfully leading the company to greater shareholder value on its own. Norfolk Southern’s CEO James Squires, who was appointed in June 2015, has been implementing a restructuring plan for the company. The plan includes substantial revenue initiatives specifically focused on intermodal and merchandising sales. In terms of cost structures, the firm also has significant improvement plans in place for pricing discipline and increased operating efficiency. These plans appear to be winning the votes of shareholders, though the stock continues to trade volatilely, down 4.1% for the year.

      


  • Notes From the Pershing Square 1st Quarter Call

    Bill Ackman (Trades, Portfolio) of Pershing Square Capital just held his first quarter call discussing the fund’s holdings.


    Due to the fund’s concentrated position in Valeant Pharmaceuticals (NYSE:VRX), it had a disastrous 2015 and an even more disastrous first quarter of 2016. As of April 5 the NAV per share sat at $15.60 and the year-to-date return for the holding was -24.6%. Ackman called it a difficult quarter on a mark-to-market basis, implying intrinsic value of Pershing’s positions is much higher.

      


  • Highlights of Bill Ackman’s 1st Quarter Pershing Square Conference Call

    Head of hedge fund Pershing Square Management Bill Ackman (Trades, Portfolio) hosted his first-quarter conference call Wednesday where he provided details about his many losses and few gains in the past several quarters. He also outlined developments at his top investments and where he sees value versus the market.


    Ackman is down 25.6% for the first quarter with ill-fated bets like Valeant (NYSE:VRX) and a bet against Herbalife (NYSE:HLF), which he defends in the call. Due to a sell of Mondelez and transaction with Air Products and Chemicals, his fund is holding substantial cash.

      


  • In Search of Profitable Stocks Using Gross Profitability

    This metric is awesome.


    It's one of the newer metrics that has earned a firm spot in my toolbox.

      


  • Time To Buy Allergan

    Allergan (NYSE:AGN) stock has dropped a lot because of rumors Pfizer (NYSE:PFE) will walk away from their deal.


    Pfizer made no attempt to pretend the deal was about anything but lowering its tax bill by relocating its headquarters to Ireland, Allergan’s homestead. The Irish tax rate compares favorably to the U.S. at 12.5%; when you are making billions in profits, it’s worth it to pay a couple of lawyers to figure it out. It seems the U.S. Treasury is now inventing new ways to apply rules just to spite Pfizer, and it looks like that’s working.

      


  • Avoid Piggybacking

    I don’t know how many articles you’ve read about Valeant (VRX) in the past few weeks, but it’s probably safe to say too many. This article, you might be happy to hear, has very little to do with Valeant – mostly because I have nothing new or intelligent to say about the company (it’s buried deep in my “too hard” pile). Instead, it’s about following the lead of others when investing.


    I had CNBC on a few days ago when some breaking news about Valeant was revealed. I turned up the volume in time to hear Jim Cramer say, in a nutshell, that Valeant is a complete disaster: there’s a lack of corporate governance, no one inside or outside the company has any sense for the numbers and so on. Later, on "Mad Money," Cramer rolled his eyes when talking about CEO “leadership” at Valeant. He summed up his thoughts on the saga a few days ago:

      


  • Bill Ackman Trims Position in Mondelez International

    Guru Bill Ackman (Trades, Portfolio) reduced his position in Mondelez International Inc. (NASDAQ:MDLZ) by more than 47% with the sale of 20,424,117 shares on March 16.


    Mondelez International was formerly known as Kraft Foods until the company completed the spinoff of its North American grocery business, Kraft Food Groups. Mondelez International manufactures and markets food and beverage products for consumers in 165 countries around the world. The company owns nine billion-dollar brands such as Oreo, Nabisco; Milka, Cadbury Dairy Milk and Cadbury chocolates; Trident gum; Jacobs coffee and Tang powdered beverages.

      


  • The Bromance at the Heart of the Valeant Disaster

    When, in April 2014, Bill Ackman (Trades, Portfolio) and Michael Pearson came on stage together at the Equitable Center in midtown Manhattan to unveil their unorthodox bid to buy drug company Allergan (NYSE:AGN), the two men couldn’t have appeared more different.


    Pearson, the CEO of Valeant Pharmaceuticals (NYSE:VRX), was frumpy, overweight and gruff. Hedge fund billionaire Ackman was, as always, impeccably groomed, trim and silver-tongued. What brought them together was their joint love of big deals – and big profits. Ackman seemed in awe of Pearson’s dealmaking and his legendary thriftiness. In his remarks, Ackman pointed out admiringly that Pearson wouldn’t allow Valeant shareholders to be on the hook for half of what it had cost to rent the auditorium they were using to announce the deal. Ackman had to pick up the tab himself.

      


  • Bill Ackman Explains Expanded Role at Valeant in New Letter

    LETTER TO SHAREHOLDERS


    Dear Pershing Square Investor,

      


  • What Is Downside?

    One of the most quoted sayings in investing goes like this: “If you take care of the downside, the upside will take care of itself.”


    This sounds so simple. People say they control risks by considering the downside in every investment and they make decisions based on the so-called risk-reward ratio – risk being the downside and reward being the upside. Very few investors appropriately implement the idea of taking care of the downside. Even many of the gurus listed on this forum failed to heed this piece of timeless wisdom.

      


  • An Attempt to Value Valeant Just for Fun

    Until last week, I had been just a casual observer of Valeant (NYSE:VRX). My knowledge of the company was limited to:


        


  • Valeant: Heads I Win, Tails I Don't Lose Much

    There are several reasons to dislike Valeant Pharmaceuticals (NYSE:VRX). Lack of management credibility, accounting irregularities and other legal investigations related to a price increase on a couple of drugs have caused its share price to fall from the high of $260 to $28.95. Investors in the company, including me, had a stomach-churning experience.


    It's always disheartening to see the value of the investment fall within a space of few months, or even days in this case. The market has a way of humbling even the best of hedge fund managers: Bill Ackman (Trades, Portfolio), Value Act, Sequoia and Lou Simpson (Trades, Portfolio) all have large stakes in Valeant. A few of them had a cost basis in the mid 100's.

      


  • Ackman Named to Valeant Board as Search for New CEO Begins

    Valeant Pharmaceuticals (NYSE:VRX) announced today that it will replace CEO Michael Pearson and name major shareholder Bill Ackman (Trades, Portfolio) to the board of directors. Pearson will continue to serve as CEO until a successor is named, and Katharine Stevenson will resign from the board to make room for Ackman.

    The company also said that CFO Howard Schiller has been asked to resign from the board due to improper conduct that resulted in incorrect information, but he has not yet done so. Valeant is already in the process of revising its numbers for fiscal 2014, and plans to include them with the 2015 report that will be filed with the SEC and Canadian Securities Regulators by April 29. Just last week, Valeant said the delayed filing would put the company at risk for defaulting on some of its debt.  


  • What We Can Learn Vicariously From Valeant Fiasco

    One of the most-read news of this week has been the Valeant (NYSE:VRX) statement on Tuesday, with a lower guidance for first quarter 2016, coupled with red ink across the fourth quarter results. To add scrutiny, the news have been followed with more interest as Bill Ackman, who was cherished by Wall Street last year as one of the most promising hedge fund managers, has 20% of its hedge fund capital invested in Valeant. So without saying who is wrong and who is right in this story, what are the lessons that we can learn vicariously, as Charlie Munger (Trades, Portfolio) suggests us to do?


    Know yourself: From Shakespeare's Hamlet, the following verse stems:

      


  • Bill Ackman Could Learn From Technical Analysis

    Taking concentrated fundamental bets is no different than playing craps in Vegas.


    By now you’ve heard about Bill Ackman (Trades, Portfolio) and his white whale — Valeant Pharmaceuticals (NYSE:VRX). In 2015, Valeant plummeted, and Ackman’s fund was down 20.5%. His misfortune continued into 2016 with his fund losing another 26% year to date after Valeant’s latest drop. Valeant’s share price was cut in half that day, and the troubled manager lost a cool billion on his position. Talk about a bad day at the office.

      


  • The Art of Finding, Analyzing and Researching Stocks Faster and Better

    Snap.


    Make fast and good decisions when picking and analyzing stocks.

      


  • Pershing Square Sells Mondelez to Raise Cash After Valeant Plunge

    Bill Ackman (Trades, Portfolio), after a string of misfortune including a 50% one-day drop in his holding Valeant Pharmaceuticals (NYSE:VRX), unloaded some of his stake in Mondelez (NASDAQ:MDLZ), he said in a letter to shareholders Wednesday.


    Ackman sold 20 million of his 43,366,342 shares in the company that he bought in the third quarter 2015 and continued to hold at fourth quarter-end. The investor has said in his latest shareholder letter he owned a total of approximately 105 million Mondelez shares and derivatives combined. In the past year, shares of Mondelez, the snack food company spun off from Kraft, gained around 21%.

      


  • Valeant Sinks 50%, Warns It Is at Risk of Debt Default

    Valeant Pharmaceuticals (NYSE:VRX) tumbled to almost half its valuation Tuesday afternoon after releasing preliminary results for the fourth quarter and guidance for the next 12 months that prompted fears of default from investors.


    The second largest guru shareholder Bill Ackman (Trades, Portfolio) released a letter to Pershing Square shareholders reiterating the firm’s belief in Valeant’s underlying value, writing that with the recent appointment of Pershing Vice Chairman Steve Fraidin to Valent’s board, Pershing will be taking a more active role in the company.

      


  • Bill Ackman Doesn't Stop Believing in Valeant, Gives Statement

    Ackman, leader of hedge fund Pershing Square, made a statement about his largest holding, Valeant Pharmaceuticals, which plunged Tuesday due to its revised earnings guidance and threat of debt default. Statement below:


    Amsterdam, 15 Mar. 2016 //- Pershing Square Holdings, Ltd. today released an email to investors. The text of the email is set forth below:

      


  • General Mills or Mondelez?

    Bloomberg recently had an article entitled “3G's Next Meal: General Mills or Mondelez?” Highlights from the article included the following: 




  • Pershing Square Gains Board Seat on Valeant

    Activist investor Bill Ackman (Trades, Portfolio) of Pershing Square has landed a representative on the board of Valeant Pharmaceuticals (NYSE:VRX), the controversy-ridden company whose stock has tanked over the past year, possibly giving investors hope that Pershing can orchestrate a turnaround.


    Valeant announced Wednesday that Pershing Vice Chairman Stephen Fraidin will join Valeant’s board of directors, which expanded from 12 to 14 seats, along with Fred Eshelman, who founded Furiex Pharmaceuticals (NASDAQ:FURX), and Thomas Ross, president emeritus of the University of North Carolina.

      


  • How Do You Look for Stocks?

    If you need a list of stock-finding techniques, here is one I have compiled, organized from my least favorite to favorite.


    Recommendations from the mainstream financial media

      


  • Knowing When to Say 'When'

    In the winter of 1928, Joe Kennedy decided to stop to have his shoes shined before he started his day's work at the office. When the boy finished, he offered Kennedy a stock tip: "Buy Hindenburg." Kennedy soon sold off his stocks, thinking, "You know it's time to sell when the shoeshine boys start giving you stock tips. This bull market is over."


    Over the years we’ve all seen events that indicate the high in the stock markets – blockbuster deals by private equity that have absolutely no chance of ever making a return (at least positive) for their investors[1], commercials that imply a tow truck driver owns an island/country[2] or the wave of “bubble funds” that seem to crop up every time during a market peak[3].

      


  • Bill Ackman Reports Owning Stake in Euro Food Company Nomad

    Bill Ackman (Trades, Portfolio), the investor whose Pershing Square has suffered double-digit losses over the past year, has owned a large chunk of Nomad Foods Ltd. (NYSE:NOMD), he reported today.


    The filing shows Ackman with 33,333,334 shares of the company on Dec. 31. The company’s stock closed at $12 per share that day, and has had a precipitous 40% decline year to date. It closed Friday at $7.20 per share.

      


  • Munger on IBM, Life Advice, Why Valeant Comments Brought 'Nothing But Trouble'



  • So, Bill Ackman Makes Some Good Points on the Index Bubble…

    He’s often controversial, and usually pretty brash. But Pershing Square’s Bill Ackman is also usually quite insightful. He’s been at this game a long time, and he’s had his share of big wins, and big losses. Ackman has an ego on him. (What hedge fund manager doesn’t?) But he’s also his own biggest critics, and like all good investors he learns from his mistakes.


    Today, let’s take a look at Ackman’s latest letter to investors, which came out last week. Ackman, like a lot of hedgies, had a terrible 2015. Here were some of his takeaways:

      


  • Valeant's Share Price Continues to Decline

    Valeant Pharmaceuticals Inc. (NYSE:VRX), one of the best specialty drugmakers, has been trading down since September 2015 when the last rally was seen. Since then, the stock plunged to less than half of its value.


      


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