Bill Ackman's Business and Politics: A Complex Mix

Bill Ackman is a highly successful investor and activist, known for his bold bets on companies like Herbalife and Valeant Pharmaceuticals. He's also been a vocal advocate for policy changes, often using his platform to push for reforms.

Ackman's business career took off in the early 2000s, when he founded Pershing Square Capital Management. His firm has since become one of the largest and most influential activist investors in the world.

Ackman's investment style is characterized by a willingness to take big risks and challenge established companies. He's not afraid to bet against the crowd, as evidenced by his high-profile short sale of Herbalife in 2012.

Bill Ackman's Investment Style is all about making bold calls that nobody believes in. He's said that his most successful investments have been the ones that are considered controversial.

Ackman has a knack for shorting stocks that he believes will fall in value, and he's not afraid to push negative media stories about the companies he's betting against. His most notable market plays include shorting MBIA's bonds during the financial crisis of 2007–2008, and his proxy fight with Canadian Pacific Railway.

Ackman's investment style is focused on research and hard work, as evidenced by his decision to cut staff and end investor visits in 2018 to focus on doing research in the office. This move paid off in 2019, when Pershing Square returned 58.1%, making it one of the world's best performing hedge funds.

Ackman admires short sellers like Carson Block of Muddy Waters Capital and Andrew Left of Citron Research, who share his willingness to take bold bets against the market.

Bill Ackman's investment style is all about making bold calls that nobody believes in. He's said that his most successful investments have been the ones that were considered controversial.

Ackman's approach has led to some notable market plays, including shorting MBIA's bonds during the financial crisis of 2007-2008. His proxy fight with Canadian Pacific Railway is another notable example.

He's also made stakes in companies like Target Corporation, Valeant Pharmaceuticals, and Chipotle Mexican Grill. Ackman's efforts against Herbalife, a company he considers a pyramid scheme, were even featured in a documentary film.

Ackman's willingness to challenge conventional wisdom has paid off in the past, but he's also experienced periods of weak performance. In 2018, he told investors that he was going back to basics by cutting staff and focusing on research.

Ackman's admiration for short sellers like Carson Block and Andrew Left is evident in his own investment style. He's credited them as inspirations for his own approach to activism.

Bill Ackman has been using the same playbook in his latest endeavors, despite shifting his focus from corporate governance to broader cultural changes. This time, he's targeting academia and public policy.

Ackman has written three memos to Harvard's governing board, which he has shared with his million-plus followers on X. His campaigns often begin with detailed and lengthy public letters.

He's been critical of Harvard University's president, Claudine Gay, and has called for her to step down or be removed by the governing board. Ackman has also spoken with students and faculty at Harvard, met with reporters at major news organizations, and done live interviews with CNBC.

Ackman believes academia has lost its way and has been critical of how Harvard and other academic institutions address antisemitism. He's also attacked public policy, including DEI (Equity, Diversity, Inclusion, and Belonging).

Ackman has called on Harvard to shut down its Office for Equity, Diversity, Inclusion, and Belonging. He's written that DEI is racist and that the movement is an important contributor to our growing divisiveness.

Here are some key points about Ackman's methods:

Pershing Square Capital was founded by Bill Ackman in 2004 with $54 million from his personal funds and Leucadia National. Ackman started the company with a clear vision for success.

The company's first major investment was in J.C. Penney, which Ackman started buying shares of in 2010, paying an average of $22 for 39 million shares or 18% of the company's stock. Ackman's campaign to transform J.C. Penney came to an abrupt end in 2013 after a disagreement with fellow board members.

Pershing Square delivered $4.5 billion in net gains for investors in 2014, bringing the fund's lifetime gains to $11.6 billion since its launch in 2004 through 2014. This impressive performance earned Ackman a spot on LCH Investments' list of the world's top 20 hedge fund managers in 2015.

Ackman's investments have not always been successful, however. He suffered a substantial loss on his Valeant Pharmaceuticals position, selling his remaining shares for about $300 million in 2017 after initially investing $4.6 billion. Ackman even testified before the United States Senate Special Committee on Aging in 2016, acknowledging his investment in Valeant was an endorsement of the company's strategy.

Pershing Square has also made other notable investments, including purchasing a large share of Wendy's stock in 2005 and pressuring management to spin off its Tim Horton's brand. The company has also shorted Herbalife stock, claiming the company operated as a pyramid scheme, and acquired Netflix shares in 2022, selling them just three months later at a $400 million loss.

Bill Ackman's business and political endeavors are quite fascinating. He's a longtime donor to Democratic candidates and organizations, including Richard Blumenthal and the Democratic National Committee.

Ackman's also made headlines for his polarizing views on politics, having donated hundreds of thousands of dollars to Democrats in the past but now supporting Republican candidates like Vivek Ramaswamy and Robert F. Kennedy Jr. He's even called on Joe Biden to step down, citing concerns over his legacy.

Ackman's presence on Elon Musk's social-media platform X has gained him a massive following of one million users. He's used the platform to voice support for figures like Kyle Rittenhouse and Sam Bankman-Fried, and has clashed with establishment views on various issues.

Ackman's also been vocal about his opposition to diversity, equity, and inclusion initiatives, particularly at Harvard University.

Bill Ackman, a well-known investor, has been making waves in US politics. He's a longtime donor to Democratic candidates and organizations, including Richard Blumenthal, Chuck Schumer, and the Democratic National Committee.

Ackman has also been vocal about his support for certain candidates, such as Michael Bloomberg and Congressman Dean Phillips, whom he endorsed for the Democratic presidential nomination in the 2024 primaries. He even pledged $1 million to support Phillips' campaign.

Despite his Democratic leanings, Ackman has also donated to Republican candidates, including Vivek Ramaswamy and Robert F. Kennedy Jr. Ackman has become "much more open to Republican candidates" in recent times.

Ackman has also used his platform on X to share his opinions on various issues, often clashing with establishment views. He's voiced support for high-profile figures like Kyle Rittenhouse and Sam Bankman-Fried, and has defended RFK Jr.'s skepticism of vaccines.

Ackman has also been critical of certain individuals, including Harvard president Claudine Gay, whom he accused of failing to condemn on-campus antisemitism. Gay resigned shortly after, while University of Pennsylvania president Liz Magill stepped down after a similar congressional hearing.

Here's a list of some of the candidates Ackman has donated to or endorsed:

Ackman's involvement in US politics is certainly noteworthy, and his willingness to challenge establishment views is a testament to his commitment to his causes.

Bill Ackman's tactics have left a trail of critics in his wake. Howard Schultz, the former Starbucks CEO, was "disgusted" by Ackman's public letter urging JCPenney's board to replace its top executive.

Ackman's reputation for being ruthless and relentless has been honed over three decades of going to war against companies and executives. Carl Icahn, one of Ackman's biggest rivals, once called him "a major loser" and said he was either "the most sanctimonious guy I ever met in my life, or the most arrogant."

Ackman's tactics haven't changed, even as his targets have shifted from corporate governance to broader cultural changes. He's still using the same cutthroat techniques he honed at Pershing Square, the hedge fund he founded in 2004.

Ackman's willingness to use public letters and media attention to pressure his targets has been consistent. He's written lengthy public letters to Harvard's governing board and M.I.T.'s governing board, and has even done live interviews with CNBC about his latest crusade.