Pershing Square Jumps 25% during the First Half of 2014

Pershing Square, an activist hedge fund management company founded and run by Bill Ackman, reported the raise of 25% during the first half of 2014, ranking the billionaire as one of this year’s top hedge fund industry performers.

Ackman told clients of his Pershing Square Capital Management hedge fund that its main portfolio rose 2.4 percent in June, putting the fund up 25 percent for the year, according to two investors.

The performance marks a huge comeback for Ackman from 2013, when big losses on Herbalife and J.C.Penney hurt the portfolio. In last year’s first half, the fund was up roughly 6 percent.

Strong gains in its top holdings, including Canadian Pacific, Air Products & Chemicals and Burger King Worldwide helped fuel the rise. Ackman has spent much of June trying to convince pharmaceutical company Allergan, in which he is the biggest investor, to sell itself to rival Valeant Pharmaceuticals, with which he is working to negotiate a deal.

Source: Reuters

 

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Pershing Square Index Up 2.9% in May 2014

Pershing Square Capital Management, an activist hedge fund management company founded and run by Bill Ackman, rose 2.9 percent in May 2014, two investors in the fund told Reuters.

Ackman, an activist investor, spent much of May pushing for pharmaceutical maker Valeant’s $52.7 billion proposed acquisition of Botox maker Allergan. Pershing Square owns a 9.7 percent stake in Allergan, whose shares have risen more than 50 percent so far this year.

The gains help rank Ackman among this year’s best-performing hedge fund managers, handily beating the average fund, which has gained only 0.83 percent, according to data from Hedge Fund Research. The performance also cements Ackman’s own strong comeback from 2013, when his fund gained 9.7 percent but suffered bruising losses on J.C. Penney and Herbalife.

Source: Reuters

 

Tags: Hedge Fund of Funds Business, Hedge Fund, Hedge Funds, Fund of Hedge Funds, Hedge Fund of Funds, Hedge Fund industry, Hedge Fund Group, Hedge Fund Market, Hedge Fund Investments, Hedge Fund Advisory Firm, Hedge Fund Returns, Pershing Square, Pershing Square Capital Management, Activist Hedge Fund, Bill Ackman, Botox Maker, Allergan, Hedge Fund Research, J.C. Penney, Herbalife.


William Ackman’s Fund Profits by Double Digits

During the quarter ended March 2014, William Ackman, an American hedge fund manager who has spent $1 billion betting that Herbalife is a fraud, delivered double digit returns to his investors.

In a note to investors, Ackman reported on Wednesday that his flagship Pershing Square LP fund gained 10.7 percent during the first quarter even after the fund slipped 0.6 percent last month, several people familiar with his returns said. Those people were not authorized to speak on the record.

The gains signal a dramatic comeback for one of Wall Street’s most closely-followed investors after losses at J.C. Penney and a sharp run-up in Herbalife’s stock price, which hurt short-sellers, weighed on the $13 billion firm’s returns.

Ackman has said Herbalife runs a pyramid scheme, something the company has steadfastly denied.

Source: Reuters

 

Tags: Hedge Fund of Funds Business, Hedge Fund, Hedge Funds, Fund of Hedge Funds, Hedge Fund of Funds, Hedge Fund industry, Hedge Fund Group, Hedge Fund Market, Hedge Fund Investments, Hedge Fund Advisory Firm, Hedge Fund Returns, William Ackman, Bill Ackman, American Hedge Fund, US Hedge Fund, Herbalife, Pershing Square LP, Wall Street, J.C. Penney.


Ackman’s Pershing Square Owns Huge Equity Stakes in Fannie and Freddie

As part of a bet that efforts in Washington could yield massive returns from the two government-sponsored entities, Pershing Square hedge fund owns big equity stakes in Fannie Mae and Freddie Mac.

But on Tuesday, as Ackman was jumping on a conference call to slam the practices of Herbalife, a company he has been lobbying against in Washington, the shares of Fannie Mae and Freddie Mac plunged.

Shares of Fannie Mae fell by 32% and shares of Freddie Mac fell by more than 28% on Tuesday after U.S. senators in Washington announced a bipartisan agreement that could lead to the shutdown of the mortgage giants, which have been operating under government conservatorship. Senate Banking Committee Chairman Tim Johnson and Senator Mike Crapo are behind the plan announced Tuesday that calls for a new government insurer to replace Fannie Mae and Freddie Mac.

The new measure in Washington, which was put together with help from the White House, has at the very least stalled the recent boom in the stocks of Fannie and Freddie.

Source: Forbes

 

Tags: Hedge Fund of Funds Business, Hedge Fund, Hedge Funds, Fund of Hedge Funds, Hedge Fund of Funds, Hedge Fund industry, Hedge Fund Group, Hedge Fund Market, Hedge Fund Investments, Hedge Fund Advisory Firm, Hedge Fund Returns, Pershing Square, William Ackman, Bill Ackman, Fannie and Freddie, Fannie Mae and Freddie Mac, Washington, Herbalife, US, Tim Johnson, Senator Mike Crapo.


Perry Capital’s Richard Perry to Acquire Herbalife

Richard Perry, a hedge fund manager whose firm Perry Capital LLC, has acquired a global nutrition and weight management company Herbalife International.

Hedge fund manager Richard Perry, who runs Perry Capital, has filed his third-quarter 13F with the Securities and Exchange Commission.

During the quarter ended September 30, Perry snapped up a position in Herbalife. Perry held 2,632,138 million shares in the quarter.

Perry also added to his FedEx position during the third-quarter, the filing shows. He held 4.2 million shares compared with 3.9 million shares in Q2.

Hedge funds only have to disclose their long equity holdings in 13F filings. These are also the long positions they held as of September 30, so they could have added to or reduced their positions since then.

Source: Business Insider

 

Tags: Hedge Fund of Funds Business, Hedge Fund, Hedge Funds, Fund of Hedge Funds, Hedge Fund of Funds, Hedge Fund industry, Hedge Fund Group, Hedge Fund Market, Hedge Fund Investments, Hedge Fund Advisory Firm, Hedge Fund Returns, Richard Perry, Perry Capital LLC, Herbalife, FedEx.


William Ackman Restructures Bet against Herbalife

After watching Herbalife’s stock more than double this year, the activist investor William A. Ackman announced he will restructure his $1 billion bet against the company to curb further losses.

Mr. Ackman said he wanted to mitigate his firm’s risks while still providing for big gains if Herbalife shares decline within the near future, as he expects.

“In recent weeks we have restructured the position by reducing our short equity position by more than 40% and replacing it with long-term derivatives, principally over-the-counter put options,” he wrote in the letter, dated Oct. 2.

Mr. Ackman, head of Pershing Square Capital Management LP, publicly alleged that Herbalife was a pyramid scheme last year and announced a $1 billion short bet against the company.

Although Herbalife, a nutritional-supplement maker, saw its shares dip after Mr. Ackman’s broadside, it has been one of the strongest gainers in the stock market this year. The Wall Street Journal reported last month that Mr. Ackman’s losses on the bet were more than $300 million. Source

 

Tags: Hedge Fund of Funds Business, Hedge Fund, Hedge Funds, Fund of Hedge Funds, Hedge Fund of Funds, Hedge Fund industry, Hedge Fund Group, Hedge Fund Market, Herbalife, William Ackman, Bill Ackman, The Wall Street Journal, WSJ.


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