Bill Ackman

Bill Ackman

Last Update: 05-15-2015

Number of Stocks: 8
Number of New Stocks: 2

Total Value: $14,970 Mil
Q/Q Turnover: 29%

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

Bill Ackman Watch

  • Will Bill Ackman Go After Express Scripts Next?

    Bill Ackman (Trades, Portfolio) of Pershing Square, the second most well known activist investor only after Carl Icahn (Trades, Portfolio), just raised more money by issuing a billion worth of bonds. The NY Post reported that according to a source on an investor's call: Ackman plans to use the debt proceeds to help his $20 billion fund take on a big target. Ackman gets his fair share of headlines, and his targets usually quickly get bumped up a few notches. That makes it both fun and potentially profitable to speculate on his next target. With his fund getting bigger and bigger targets are becoming scarce which helps.

    To try and deduce what company Pershing Square will target, the first thing I did was set up a screen that excludes companies based on Ackman’s likely preferences. My screen excluded companies below $50 billion because he is going after a big target. It also excluded various industries like retail, energy and basic materials that I think he is unlikely to invest in right now based on his historic preferences and public comments he made. In addition I only included companies with a multiyear stable operating cash flow record and finally also excluded companies that analysts are extremely optimistic about because these are not logical targets for an activist. Finally, I expect Ackman will not invest outside the U.S. because of the additional legal issues and because of all the additional travel he and his team would need to do which could hurt the overall portfolio.


  • Acquisition in the Health Care Industry Increased Volatility

    In a previous article we discussed some reasons why Bill Ackman (Trades, Portfolio) initiated a position in Valeant Pharmaceuticals International (VRX) to $3.87 billion, according to the fund's latest filing.

    On Friday, shares were down about 2% to $228.83. According to the Wall Street Journal, there was a potential buyout offer to buy animal-health giant Zoetis (ZTS). Someone who is behind this move is activist investor Bill Ackman (Trades, Portfolio), who has taken a $2 billion stake in Zoetis and wanted the company to sell itself. Mr. Ackman also owns 5.7% of Valeant.


  • Bill Ackman's Pershing Square Releases Letter To Herbalife CEO Michael Johnson

    Pershing Square Capital Management, L.P. released today a letter to Herbalife (HLF) CEO Michael Johnson concerning his serious admissions about Herbalife and its conduct that were revealed by the New York Post. The letter reads as follows:


  • Follow Bill Ackman in Valeant Pharmaceuticals

    Over the past days hedge funds have been filing their form 13-F, which is a quarterly report of equity holdings filed by institutional investment managers with at least $100 million in equity assets under management, as required by the United States Securities and Exchange Commission (SEC).

    Bill Ackman (Trades, Portfolio)´s Pershing Square disclosed an equity portfolio valued at $14.97 billion at the end of the first quarter of 2015. The equity portfolio is mainly invested in Health Care (46%), Materials (31%) and Transports (19%) stocks.


  • Post-Mortem Of A Failed Investment: J.C. Penney

    In June 2012, I published an article outlining why I believed J.C. Penney (JCP) was a solid investment (here). At the time, the stock was trading at roughly $22 per share; three years later, it’s near $8 per share, for a loss on the investment of more than 60%. Clearly this is not how I envisioned this investment playing out.

    As painful as this experience has been, it has given me the opportunity to learn and improve; as an investor, I hope that I’ll take away the lessons needed to avoid similar mistakes in the future. I would consider failing to do so an even greater error than the investment itself.


  • A Close Look of Herbalife Clubs Worldwide: Part II

    Click here For Part I.

    The company has been fairly clear why it is like that. The explanation is that for a MLM it is important for distributors to protect the second sale.


  • A Close Look of Herbalife Clubs Worldwide: Part I

    This is a very long post. I have done a lot of work on Herbalife that should be made public – and I am travelling on several long-haul plane journeys which gave me time to splice it all together. [Now in New York via London and the Middle East.]

    There are Herbalife groups all around the world and they reflect the character of the community they are in.


  • The Latest Investing Moves by Seven Masters of the Universe

    45 days after quarter end, large institutional investors have to report their holdings to the SEC, which are then made available to the investing public. So as of late last week, we now have updated visibility into the trading machinations of the masters of the universe.

    Of course, the usual caveats apply. No matter how successful a manager is, it’s never a good idea to blindly follow their investment moves. By the time you or I get access to their trading moves, the data is as much as 45 days old. And for all we know, they may be selling it by the time we buy. Plus, as managers are not required to report short positions or options and derivatives positions, we also have no insight as to whether a stock might be a part of a long/short pair trade or some broader strategy.


  • Paul Tudor Jones Adds To Position in CSX Corp

    Paul Tudor Jones (Trades, Portfolio) is the president and founder of Tudor Investment Corporation. He is one of the most successful investors of current times. Last quarter, he increased his stake in CSX Corporation (CSX) by buying 142,379 shares. As of March 31, he held 325,494 shares of the company.


  • A Look at Bill Ackman’s Investment in Air Products

    Bill Ackman (Trades, Portfolio) is known for his activist approach. He buys the common stocks of public companies, and pushes for changes so that the market can realize the values of the companies. Ackman buys stocks trading at a discount, and sells when the companies reach their appraised value.

    Air Products and Chemicals (APD) is one of his current activist targets. He currently holds 20,549,076 shares of the company. Air Products has a portfolio of products that include atmospheric gases, process and specialty gases, performance materials, equipment, and services. One of the key bullish arguments for Air Products is the company's margin expansion potential. Air Products used to have an operating margin of around 13% when Ackman initiated his position. His key argument was that with a right management and processes in place, the company’s margins can see a meaningful upside.


  • Bill Ackman Adds Two Positions to Portfolio in 1QFY15

    Bill Ackman (Trades, Portfolio) added two new positions to his portfolio, according to GrurFocus Real Time Picks. The new additions bring his number of stocks to a total of eight and valued around $14.97 billion. His portfolio's quarter-over-quarter turnover is 29%.

    Ackman purchased 19,473,933 shares of Valeant Pharmaceuticals International Inc (VRX) at an average price of $177.40 a share.


  • Ackman on Valeant Pharma: The Next Berkshire Hathaway?

    Valeant Pharmaceuticals International Inc (VRX) is a specialty pharmaceutical and medical device company that develops, manufactures, and markets a range of generic and branded generic pharmaceuticals, over-the-counter products and medical devices. Under the control of CEO Michael Pearson, Valeant’s aggressive new acquisition strategy has been executed close to perfection.

    Valeant just completed its acquisition of Salix Pharmaceuticals on April 1 after a failed attempt to buy Allergan last year. An un-Berkshire-esque bidding war left VRX paying $15 more per share for the company, despite Salix’s Xifaxan gastrointestinal drug, which many analysts believe has blockbuster potential. How much will they overpay next time?


  • Canadian Pacific’s Stock Corrects In Spite Of Good Results

    Canadian Pacific’s (CP) stock has corrected ~10% since mid-April despite posting good last-quarter results. While the company’s revenues were in line, its Q1 EPS of C$2.26 was better than estimates by C$0.07. CP's operating ratio was an impressive 63.2% in Q1. The main reason behind the recent correction is cautious commentary by other railroad companies. I believe it is incorrect to club Canadian Pacific with other rail road companies as it is really doing a good job in terms of improving its operations. Billionaire hedge fund manager Bill Ackman (Trades, Portfolio), who has a sizable stake in the company, recently called CP’s management best in the industry. Here’s a look at the company in detail.

    Canadian Pacific is a Class I Railroad company based in Canada. CP owns approximately 9,900 miles of track. An additional 3,800 miles of track are owned jointly, leased or operated under trackage rights. The company has shown good growth in its earnings in the past and its EPS has more than doubled over the last few years.


  • Air Product’s CEO Continues Buying The Stock

    Air Products and Chemicals (APD) is one of the current activist targets of Bill Ackman (Trades, Portfolio) and he currently holds 20,549,076 shares of the company. In addition to Bill Ackman, the company’s CEO - Seifollah Ghasemi – also seems very upbeat about the company’s prospects and is actively buying its shares. On May 1, 2015, he bought 20,000 shares of the company. In total, he has purchased 135,000 shares of the company since he became the CEO. He is the person in charge of turnaround and his buy back activity makes me bullish on the company.

    Air Products recently reported solid 2Q FY2015 results with adjusted EPS of $1.55, up 17 percent versus prior year. The company's adjusted EBITDA margin of 29.4% was up 440 basis points versus prior year. In addition, the company also announced that it has been awarded contract with Saudi Aramco for the world’s largest industrial gas complex which will supply 75,000 metric tons per day (20,000 oxygen and 55,000 nitrogen) to Saudi Aramco’s refinery being built in Jazan, Saudi Arabia for 20 years. Commenting on the win, Air Product's CEO Seifi Ghasemi said:


  • Baby Buffett - Will Bill Ackman Resurrect The Ghost Of Howard Hughes And Build A Corporate Empire?

    Bill Ackman bounds onto the stage in the ballroom of the Crowne Plaza Hotel in midtown Manhattan in front of hundreds of his peers: the crème de la crème of hedge funds, law firms, endowments and large pension funds. It’s early April, and Ackman is determined to give the Active-Passive Investor Summit a preview of what he internally calls “Pershing Square 2.0″: his rebirth as a kinder, gentler investor, more focused on building companies that last than on making quick trading profits.

    The ballroom responds with a yawn.


  • Bill Ackman's Ira Sohn Presentation – Long Jarden, Platform Specialty Products and Valeant

  • Weekly CEO Buys Highlight: APD, OPK, ASPS, ADTN, NSA

    According to GuruFocus Insider Data, these are the largest CEO buys during the past week. The overall trend of CEOs is illustrated in the chart below:

    Air Products & Chemicals Inc: Chairman, Pres. and CEO Seifi Ghasemi bought 20,000 shares


  • Bill Ackman Is Still 100% Confident In His Herbalife Short

    Bill Ackman (Trades, Portfolio) is famously short Herbalife (HLF).

    He does not think that the government needs to come in and shut Herbalife down for him to be successful. He believes that deterioration of the business will allow his short to be successful over time.


  • Bill Ackman May Buy This Railroad Company

    CSX Corporation (CSX) is in the news recently due to rumours of Bill Ackman acquiring a sizable stake in the company. The company's stock has seen unusual stock price movements and options activity of late. UBS analyst pointed out that recent volume trend and stock performance of CSX is similar to that of Canadian Pacific (CP) during September and October 2011 when Pershing Square was buying its stock. I believe CSX's stock offers a good value at current levels. Here's a look at the company in detail.

    CSX Corporation is one of the nation's leading transportation companies. The company provides rail-based transportation services including traditional rail service and the transport of intermodal containers and trailers. The company’s annual average number of employees was approximately 32,000 in 2014, which includes approximately 26,000 union employees. Most of the company’s employees provide or support transportation services.


  • Time To Call In The Shorts On Lumber Liquidators

    Here’s an interesting company that some consider the Walmart of flooring, selling really low quality (and cheap) hardwood floors. The company has a network of around 318 Lumber Liquidators stores located throughout the United States and Canada.


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