Wednesday, 31 August 2016
Last updated 1 hour ago
Jul 17 2008 | 9:09am ET
With Target Corp. stock down almost 40% in the past year, activist hedge fund manager William Ackman is giving the hedge fund he set up to invest in the retailer a vote of confidence.
Ackman’s Pershing Square Capital Management added at least $100 million to the roughly $2 billion fund, Bloomberg News reports. Ackman himself added $5 million, and solicited new investments from both current and new investors.
The fund may put the new money to use in a variety of ways, either increasing its stake, which stood at 12.6% in January, in Target or extending the duration of the options that make up the bulk of its portfolio. Target stock has fallen consistently over the past year, peaking three days before Ackman announced his stake.
Ackman has pushed Target to buy back stock, extract cash from its real-estate holdings and sell off its credit-card portfolio.