Tuesday, 31 March 2015
Last updated 54 min ago
Oct 25 2013 | 12:53pm ET
Pershing Square Capital Management is doing something that it's had precious little opportunity to engage in recently: profit-taking.
The New York-based hedge fund announced that it had sold a chunk of its stake in Canadian Pacific Railway, whose stock has soared since Pershing Square won two board seats last year. The hedge fund's investment has nearly tripled in value since it began buying shares in 2011, amounting to a US$2 billion profit.
Pershing Square announced in June that it would sell 7 million shares over the course of a year. But after unloading a million of the them over the last four months, it succumbed to pressure from analysts and other investors, who feared the projected sales would weigh on its share price.
Bank of America Merrill Lynch, Credit Suisse and Morgan Stanley arranged the sale, which netted about US$800 million.
Pershing Square remains CP's largest shareholder with a 9.8% stake, and both Ackman and Pershing Square partner Paul Hilal will remain on the company's board.
The sale adds to Pershing Square's growing cash horde. The firm has been hit hard by the poor performance of its investment in J.C. Penney Co. and its huge short against nutritional supplements company Herbalife, but performance has picked up this month, investors told Reuters.
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As more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…