Bill Ackman News: The Rise and Fall of Pershing Square Capital

Bill Ackman's Pershing Square Capital was founded in 2004 with an initial $50 million in capital.

Ackman's big break came in 2005 when he short-sold Herbalife, a nutrition supplement company, which led to a significant profit.

Pershing Square's early success was largely due to Ackman's bold and contrarian investment approach.

Ackman's net worth skyrocketed to $1.4 billion by 2008, thanks in part to his successful short sale of Herbalife.

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Pershing Square Capital Management was founded by Bill Ackman in 2004 with $54 million from his personal funds and Leucadia National. He started the firm with a personal investment.

Ackman's firm started buying J.C. Penney shares in 2010, paying an average of $22 for 39 million shares, which was 18% of J.C. Penney's stock. This was a significant investment.

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.

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Pershing Square Capital is a hedge fund founded by Bill Ackman in 2004 with $54 million from his personal funds and Leucadia National. It's been quite a journey for the fund, which has delivered $11.6 billion in lifetime gains since its launch.

Ackman started buying J.C. Penney shares in 2010, paying an average of $22 for 39 million shares or 18% of the company's stock. This investment didn't quite pan out as planned, and Ackman stepped down from the board in 2013.

One of Pershing Square's biggest successes was its turnaround of General Growth Properties, which netted the fund a whopping $1.6 billion return on a $60 million investment. This was a remarkable feat, and it's a testament to Ackman's skills as a hedge fund manager.

Ackman also had a significant stake in Valeant Pharmaceuticals, which he sold to Jefferies for about $300 million in March 2017. This investment didn't quite work out, as Ackman had originally paid around $4.6 billion for his position.

Pershing Square has had its fair share of wins, including a successful stake in Wendy's, where the fund successfully pressured management to spin off the Tim Hortons brand.

Bill Ackman's Herbalife short was a notable market play that lasted from 2012 to 2018. He held a US$1 billion short against the nutrition company, which he described as a pyramid scheme designed as a multi-level marketing firm.

Ackman's efforts were reported in the documentary film Betting on Zero. He was convinced that Herbalife's business model was unsustainable and would eventually collapse.

The Herbalife short was a long-term bet that ultimately didn't pay off for Pershing Square. After weak performance in 2015-2018, Ackman told investors in January 2018 that he was going to focus on other investments.

Ackman has said that he admires short sellers such as Carson Block of Muddy Waters Capital and Andrew Left of Citron Research, who share his passion for uncovering flawed business models.

Ackman's most successful investments have been controversial, making bold calls that nobody believes in.

He has a straightforward approach to activist investing, which involves making a bold call that nobody believes in. This is evident in his notable market plays, including shorting MBIA's bonds during the financial crisis of 2007-2008.

Ackman has also been known to take on big names, such as Canadian Pacific Railway, and has stakes in companies like Target Corporation, Valeant Pharmaceuticals, and Chipotle Mexican Grill.

Bill Ackman was born on May 11, 1966, in New York City.

He grew up in Scarsdale, New York, and graduated from Harvard University in 1988.

Ackman began his career in finance at Kidder Peabody & Co.

He later joined D.E. Shaw, a hedge fund, where he worked for 10 years.

Ackman founded Pershing Square Capital Management in 2004.

Bill Ackman is a committed philanthropist, having signed The Giving Pledge to give away at least 50% of his wealth to charitable causes.

He has made significant donations to various organizations, including the Center for Jewish History, where he personally contributed $6.8 million to retire $30 million in debt.

Ackman's foundation donated $1.1 million to the Innocence Project in New York City and Centurion Ministries in Princeton, New Jersey.

In 2006, Ackman and his then-wife Karen founded the Pershing Square Foundation, which has committed over $400 million in grants since its inception.

The foundation is a major donor to Planned Parenthood and has been recognized for its generosity, including being listed on The Chronicle of Philanthropy's "Philanthropy 50" in 2011.

Ackman was honored by the Challenged Athletes Foundation in 2014 for helping raise a record $2.3 million.

In 2021, he donated 26.5 million shares in Coupang, valued at $1.36 billion, to three entities, including his own foundation.

Ackman has also auctioned a lunch with himself for charity, raising $210,000 in 2022, with him matching the winning bid to support the David Lynch Foundation.

Bill Ackman's involvement in US politics is a fascinating aspect of his life. He's a longtime donor to Democratic candidates and organizations, including Richard Blumenthal, Chuck Schumer, and the Democratic National Committee.

Ackman's voting record is a bit of a surprise, as he voted for Trump in the 2016 election. He even endorsed Michael Bloomberg as a potential presidential candidate in the same election.

Ackman's support for the Democratic Party continued in the 2024 presidential primaries, where he endorsed Congressman Dean Phillips. Phillips even floated the idea of a Cabinet post for Ackman and Elon Musk in a forum with them.

After Phillips suspended his candidacy, Ackman donated to Robert F. Kennedy Jr.'s presidential campaign. Ackman's reasons for supporting Kennedy aren't explicitly stated, but it's clear he was looking for an alternative to the Democratic Party.

Ackman's stance on Joe Biden's presidency is also notable. He announced on X that he wouldn't support Biden due to his alleged "lack of support" for Israel. This decision left him open to voting for former President Trump, whom he eventually endorsed on July 14, 2024.

Bill Ackman has been married twice, first to Karen Ann Herskovitz in 1994, with whom he had three children.

The couple's marriage ended in separation in 2016.

Bill Ackman's second marriage was to Israeli-American designer Neri Oxman in 2019, and they had their first child together that same year.

Ackman is an avid tennis player and has even claimed he could play a close match against tennis legend John McEnroe.

As of 2017, Bill Ackman owned a Gulfstream G550 business jet, a symbol of his wealth and success.

Bill Ackman also owns a $90 million penthouse apartment in Manhattan, one of his many residential properties.