Thursday, 18 December 2014
Last updated 6 hours ago
Nov 5 2013 | 8:14am ET
Pershing Square Capital Management posted a huge return in October, transforming what appeared to be an extremely disappointing year into an extremely promising one at a stroke.
The firm's flagship International Fund jumped 7.9% last month and is now up more than 8% on the year. Returns were fueled by big gains among some of its biggest holdings, including mall owner General Growth Properties, Burger King Worldwide and Canadian Pacific Railway.
The New York-based hedge fund has had an up-and-down year in 2013, but recently it's been primarily down. After a difficult summer, Pershing Square was essentially flat, burned by big losses on J.C. Penney Co. and its $1 billion short against nutritional supplements company Herbalife.
Pershing Square booked a $500 million loss when it sold off its entire Penney's stake and has a similarly large paper loss on its Herbalife short, which it recently restructured to reduce risk. But its October surge was helped by a 7.1% drop in Herbalife's share price—although it remains up 84% on the year. Ackman is planning a new presentation on the company, which he believes is a pyramid scheme, later this month.
Of course, October wasn't without its missed opportunities: Pershing Square in September nearly halved its General Growth stake, only to see the stock jump 10% last month.
Pershing Square said in a letter to investors that it had added two short positions in October, although it did not identify them. It also added two long bets.
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.