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Bill Ackman First Quarter Letter; On CP, JCP, C, and GGP

June 12, 2012 | About:

This is the first quarter client letter of Bill Ackman, the hedge fund guru who runs Pershing Square. His funds trailed the S&P500 slightly in the first quarter, but have ourperformed significantly since inception.

Ackman discussed his holdings in Canadian Pacific (NYSE:CP), J.C. Penney (NYSE:JCP), Justice Holdings, Citigroup (NYSE:C) and General Growth Properties (NYSE:GGP). He also talked about the valuation of private business vs. publicly traded ones. He wrote: “In our investment approach, we wait for the opportunity to purchase a great business at a highly discounted valuation, when investors overreact to negative macro or company-specific events…” Apparently he enjoys activist investing. He wrote: “Our greatest competitive advantage is the ability to buy a stake in a company with the ability to intervene in the decision making, strategy, management, or structure of the business.”

Pershing highlights that they've started buying a new stake and have added a rare equity short, but they've declined to disclose any names.

Read the complete letter:

Pershing Square Q1 12 Investor Letter

Rating: 3.5/5 (8 votes)


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