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Activist Investor Bill Ackman, Sells in Review

November 18, 2013 | About:
Sally Jones

Sally Jones

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The recently updated portfolio of William “Bill” Ackman, CEO of Pershing Square Capital Management, lists eight stocks, none of them new, and a total value of $10.927 billion. The fund’s quarter-over-quarter turnover is 11%. The portfolio’s top sectors are weighted as: consumer defensive at 33.1%, industrials at 27.7% and basic materials at 21.3%. According to the GuruFocus Scoreboard, Guru Bill Ackman is averaging a 12-month return of 7.38%.

Here are the most recent decreases in the Ackman portfolio, beginning with his major reduction of the Canadian Pacific Railway Ltd. (CP), which he also reduced in the third quarter of 2013, according to GuruFocus Real Time Picks.

Incorporated in 1881, Canadian Pacific Railroad reported its third quarter net income at $324 million, up by 45%. The railroad’s quarterly revenue was a record $1.5 billion, up 6% over last year. In the third quarter of 2013, the company’s adjusted net income was $331 million, up by 48%. CP’s record-breaking quarterly earnings were up 45% year-over-year at an adjusted EPS of $1.88.

Canadian Pacific Railway Ltd. (CP): Reduced

Impacts Portfolio: -9.16%

Current Shares: 17,159,888

Up 56% over 12 months, Canadian Pacific Railway Ltd. has a market cap of $25.12 billion; its shares with a P/E ratio of 35.80 and a P/B of 4.50. The dividend yield is 0.95%.

Guru Action: As of Oct. 24, 2013, Bill Ackman reduced his position by 28.97%, selling shares in the average price range of $141.72. The current price is $143.37, with a change from average up 1%.

Ackman’s highest gain was 150.3% when he made a new buy of 4,040,235 shares at an average price of $57.28 in the third quarter of 2011. He held for four quarters and averaged a gain of 143% on 24,159,888 shares bought at an average price of $59.06 per share.

Check out more gurus holding CP and recent insider trading.

Tracking historical share pricing, revenue and net income:

1384722076860.png

General Growth Properties Inc. (GGP): Reduced

Impacts Portfolio: -5.83%

Current Shares: 35,681,182

Up 10% over 12 months, General Growth Properties Inc., a retail REIT, has a market cap of $18.94 billion. Shares trade with a P/E ratio of 81.90.

The dividend yield is 2.31%.

Guru Action: As of Sept. 30, 2013, Bill Ackman reduced his position by 47.36%, selling 32,107,975 shares at an average price $20.14 per share, making a gain of 3.2%.

The current price is $20.79 with a change from average up 3%.

Bill Ackman has averaged a gain of 43% on 74,733,712 shares bought at an average price of $14.53 per share. He averaged a gain of 2% on 39,052,530 shares sold at an average price of $20.34 per share.

Review more recent guru and insider trading.

Tracking historical share pricing, revenue and net income:

1384722340181.png

Procter & Gamble Co. (PG): Reduced

Impacts Portfolio: -4.8%

Current Shares: 2,123,893

Up 25% over 12 months, Procter & Gamble Co. has a market cap of $230.61 billion. Shares trade with a P/E ratio of 21.50.

The dividend yield is 2.79%.

Guru Action: As of Sept. 30, 2013, Bill Ackman reduced his position by 76.24%, selling 6,816,240 shares at an average price of $79.54, gaining 6.6%, his lowest gain in four quarters of gains.

The current price is $84.84, with a change from average up 6%.

Bill Ackman averaged a gain of 32% on 27,946,892 shares bought at an average price of $64.30 per share. On shares sold, he averaged a gain of 8% on 25,822,999 shares at an average price of $78.77 per share.

Review numerous gurus trading PG and insider activity.

Tracking historical share pricing, revenue and net income:

1384722615783.png

Matson Inc. (MATX): Sold Out

Impacts Portfolio: -0.05%

Up 15% over 12 months, Matson Inc. has a market cap of $1.06 billion. Shares trade with a P/E ratio of 17.10.

The dividend yield is 2.52%.

Guru Action: As of Sept. 30, 2013, Bill Ackman sold out his MATX holding, selling 202,913 shares at an average price of $27.69, taking a loss of 11.1%, his lowest quarter.

The current price is $24.63 with a change from average down 11%.

In five quarters of holding MATX, Bill Ackman’s results were mixed, and never exceeded a gain of 10.4%. In the third quarter of 2012, he made a new buy of 3,644,870 shares bought at an average price of $24.14 per share, making a gain of 2%.

Review more guru stakeholders and recent insider selling.

Tracking historical share pricing, revenue and net income:

1384722939291.png

Finally, in the third quarter of 2013, Bill Ackman sold out his stake in J.C. Penney Co. Inc. (JCP), unloading 39,075,771 shares at an average price of $14.26 per share, taking a loss of 36.7% after five quarters of double-digit losses. Read Ackman’s words to his investors upon exiting JCP. The current JCP share price is around $9.03.

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Guru Bill Ackman formed Pershing Square Capital Management in 2003.

Here’s the complete portfolio of Bill Ackman.



GuruFocus Real Time Picks reports the stock purchases and sales that Gurus have made within the prior 2 weeks. The report time lag can be as short as 2 days after the date of the transaction. This feature is for Premium Members only.

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About the author:

Sally Jones
Sally Jones writes about Real Time Picks. She says, "I truly enjoy watching the Gurus in realtime and telling their story."

Rating: 4.0/5 (3 votes)

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