Bill Ackman spoke at a luncheon sponsored by one of Canada's most famous law firms. After Ackman delivered the keynote address, he fielded some questions from a reporter.
Ackman first commented on real estate, where he has recently made bullish bets in commercial real estate.
“I think the only thing missing is confidence. All you need is a relatively small turn.”
Over the last few years, Ackman has turned into a commercial real estate investor. His largest holding is JC Penney (JCP, Financial) at 19.3% of his portfolio. A large part of Ackman's investment thesis in JC Penney is, "JC Penney owns substantial core and non-core fee and long-term leasehold real estate interests." More specifically, JC Penney owns approximately 41 million square feet of retail space and another 11 million square feet of distribution space.
In addition, Ackman's second largest holding is General Growth Properties (GGP, Financial), which he purchased in the heat of the financial crisis for prices ranging from 35 cents to $1.58 per share.
Ackman predicted that the rise of rental rates means that people will ultimately start looking at houses again. When he was pressed on the time line of the real estate recovery, Mr. Ackman said he expects a turnaround by spring of 2012.
Ackman also made a critical comment about gold when he said, "I’ve never believed that gold is an investment asset. Would you rather have faith in that, or McDonald's (MCD, Financial), which has 32,000 stores?”
Ackman first commented on real estate, where he has recently made bullish bets in commercial real estate.
“I think the only thing missing is confidence. All you need is a relatively small turn.”
Over the last few years, Ackman has turned into a commercial real estate investor. His largest holding is JC Penney (JCP, Financial) at 19.3% of his portfolio. A large part of Ackman's investment thesis in JC Penney is, "JC Penney owns substantial core and non-core fee and long-term leasehold real estate interests." More specifically, JC Penney owns approximately 41 million square feet of retail space and another 11 million square feet of distribution space.
In addition, Ackman's second largest holding is General Growth Properties (GGP, Financial), which he purchased in the heat of the financial crisis for prices ranging from 35 cents to $1.58 per share.
Ackman predicted that the rise of rental rates means that people will ultimately start looking at houses again. When he was pressed on the time line of the real estate recovery, Mr. Ackman said he expects a turnaround by spring of 2012.
Ackman also made a critical comment about gold when he said, "I’ve never believed that gold is an investment asset. Would you rather have faith in that, or McDonald's (MCD, Financial), which has 32,000 stores?”
