We made a similar error in not trimming our Canadian Pacific (NYSE:CP) position when it reached ~C$240 per share. While we still believed CP was trading at a discount to intrinsic value at that price and there was the potential for CP to complete an industry-transforming, value-creating merger, in light of the size of the position as a percentage of the portfolio, and concerns we had about the Chinese economy, it would have been prudent to sell a portion of our investment.
From Bill Ackman (Trades, Portfolio)'s Pershing Square Annual Investor Letter 2015.
