Thursday, 28 August 2014
Last updated 10 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.
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...