Pershing Square Sells Canadian Pacific Shares

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.


In Depth

Q&A: Neil Azous Talks Global Macro Investing

Nov 24 2014 | 12:41pm ET

Neil Azous is the founder and managing member of Rareview Macro, an advisory firm...

Lifestyle

Griffin Selling Chicago Apartment

Nov 26 2014 | 11:40am ET

Citadel Investment Group’s Kenneth Griffin is making clear to his estranged wife...

Guest Contributor

Why The Big Money Is Going To Europe

Nov 14 2014 | 6:03am ET

Peer-to-peer lending was invented with the individual investor in mind. But despite...

 

Sponsored Content

    For Hedge Funds, Mastering Data Is Key To Success

    Nov 4 2014 | 9:45am ET

    Data management is important to every business, but for hedge funds, it is critical. FINalternatives recently asked Peter Sanchez, CEO of Northern Trust Hedge Fund Services, how fund managers can deal with the demands of managing data while at the same time remain transparent and abide by operational best practices. Read more…

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

November 2014 Cover

Building a better market

Reg NMS created a huge bifurcation in equity markets and while much of what has followed has been positive, in terms of lower fees and greater liquidity, many traders would like to see the market come...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.