In our August 26, 2016 Investor letter, we reported the sale of our remaining 9.8 million shares of CP (CP, Financial) on August 4, 2016, approximately five years from the inception of the investment. During the course of our investment, CP’s share price increased four times, its operating performance went from worst to nearly tied for first with Canadian National, and its credit rating improved from a weak Baa-/BBB- to a strong Baa+/BBB+. While critics often accuse activists of being short-term investors focused primarily on stock buybacks and dividends, CP is a paradigmatic example of the long- term sustainable business performance enhancements and shareholder value creation we have achieved in our core activist holdings.
During our period of ownership, Canadian Pacific’s total shareholder return, including dividends, was 318.9%.
From 2016 annual letter to shareholders of Pershing Square by Bill Ackman (Trades, Portfolio).
