Shaw Capital Working Tips: Bill Ackman And Pershing Square Capital Management ; Top Holdings: Jcp
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Feb. 21, 2011 | Filed Under: JCP , GGP , FO , C , KFT , BGP
William (Bill) Ackman is the hedge fund manager of Pershing Square Capital Management. Mr. Ackmans father, Lawrence was a real estate investor. Bill Ackman graduated from Harvard in 1992. After college, Ackman founded Gotham Partners. Over the Gothams life span, the firm had grossed more than $500 million in assets.
In 2004 Ackman founded Pershing Square Capital Management. The current fund is valued at $5.7 billion. Ackmans main investment focus is on real estate and retail, which makes up just over 50% of the fund. In January 2011 it was reported the hedge fund had a 29.7% return in 2010. The top 5 companies in the funds portfolio are JC Penney (JCP), General Growth Properties (GGP), Fortune Brand Inc (FO), Citigroup (C), and Kraft Foods (KFT).
Borders Group Inc (BGP), was the lowst performer in his portfolio, and as of last week Borders filed for banckrupcy. Ackman currently own 10.6 million shares of Borders. Ackman has lost an estmate of $230 million off of his investment in Borders.
JC Penney (JCP)
On October 8, 2010 Ackman bought 39.7 million shares of JC Penney, equivalent to 16.8% of the company. This transaction also involved Vornado Realty Trust, which bought 9.9% of the company. Together Ackman and Vornado Realty Trust bought 26.7% of JC Penney stock. On January 24, 2011 Bill Ackman and Steve Roth (chairman of the board of Vornado Realty Trust) were appointed as directors of the company.
JC Penneys market cap is around $8.5 billion. Its current stock price trades around $36.80, with a P/E ratio of 27.46, and a P/S ratio of about .5. JC Penney recorded $17.5 Billion last year in revenue. They also recently paid a quarter divided of $.20. The company makes up about 19.78% of the portfolio.
According to Ackmans letter to the shareholders for the 3 Quarter of 2010, he is attracted to JC Penney because of its inexpensive valuation, strong brand name and assets, and well-deserved reputation for overseas sourcing, high quality systems, and large in-house brands. His average price of purchasing was around $25.28. Meaning Ackman has already accumulated a return of around 23.5%. Recently JC Penney (under the influnce of Ackman) has recently decided to cease its catalog and outlet operations. They want to focus on store to store sales, and want to move a way from expanding on its standalone stores and concentrate on JC Penneys retail mall stores . Ackman hopes to monitor improvements and restructuring of the company as being a member of their board.
Feb. 21, 2011 | Filed Under: JCP , GGP , FO , C , KFT , BGP
William (Bill) Ackman is the hedge fund manager of Pershing Square Capital Management. Mr. Ackmans father, Lawrence was a real estate investor. Bill Ackman graduated from Harvard in 1992. After college, Ackman founded Gotham Partners. Over the Gothams life span, the firm had grossed more than $500 million in assets.
In 2004 Ackman founded Pershing Square Capital Management. The current fund is valued at $5.7 billion. Ackmans main investment focus is on real estate and retail, which makes up just over 50% of the fund. In January 2011 it was reported the hedge fund had a 29.7% return in 2010. The top 5 companies in the funds portfolio are JC Penney (JCP), General Growth Properties (GGP), Fortune Brand Inc (FO), Citigroup (C), and Kraft Foods (KFT).
Borders Group Inc (BGP), was the lowst performer in his portfolio, and as of last week Borders filed for banckrupcy. Ackman currently own 10.6 million shares of Borders. Ackman has lost an estmate of $230 million off of his investment in Borders.
JC Penney (JCP)
On October 8, 2010 Ackman bought 39.7 million shares of JC Penney, equivalent to 16.8% of the company. This transaction also involved Vornado Realty Trust, which bought 9.9% of the company. Together Ackman and Vornado Realty Trust bought 26.7% of JC Penney stock. On January 24, 2011 Bill Ackman and Steve Roth (chairman of the board of Vornado Realty Trust) were appointed as directors of the company.
JC Penneys market cap is around $8.5 billion. Its current stock price trades around $36.80, with a P/E ratio of 27.46, and a P/S ratio of about .5. JC Penney recorded $17.5 Billion last year in revenue. They also recently paid a quarter divided of $.20. The company makes up about 19.78% of the portfolio.
According to Ackmans letter to the shareholders for the 3 Quarter of 2010, he is attracted to JC Penney because of its inexpensive valuation, strong brand name and assets, and well-deserved reputation for overseas sourcing, high quality systems, and large in-house brands. His average price of purchasing was around $25.28. Meaning Ackman has already accumulated a return of around 23.5%. Recently JC Penney (under the influnce of Ackman) has recently decided to cease its catalog and outlet operations. They want to focus on store to store sales, and want to move a way from expanding on its standalone stores and concentrate on JC Penneys retail mall stores . Ackman hopes to monitor improvements and restructuring of the company as being a member of their board.
