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Bill Ackman's Q3 Investor Letter
The focus of the recently released quarterly investor letter by Bill Ackman's Pershing Square seeks not so much to explain why the fund has a negative return YTD, but to justify why the Fund's approach to "intrinsic value" is right, and the market, well, not so much, as well as the show why even if he continues to be wrong he won't have to dump losers. Supposedly this is the kind of the thing that LPs like hearing these days. The one line that sticks out like a sort thumb in this valiant effort to explain the lack of alpha is the following: "It is largely a function of Pershing Square’s growing influence in the capital markets, our experience with previous investments, and specific circumstances with each of our holdings." That's great, and a false belief in one's market moving "economy of scale" works great, until it doesn't. Just ask Bill Milller. Also we wonder: where have all those "HF hotel" idea dinners that used to generate so much faux alpha for the Ackman-Einhorn-Loeb trio, gone? In fact, the hubris of mistaking beta participation for alpha creation is often the ast mistake many hedge funds make just before they can't make any more mistakes. That aside, in the letter Ackman explains away his thesis (again) on JCP, Fortune Brands, Family Dollar, GGP (no longer the sterling poster child of the REIT renaissance), Citi and lastly his recent(ly leaked) investment in the Canadian Pacific Railway. All we can say is that we hope Ackman is better hedged for the coming retail downturn than he was back in 2008.
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Hedge Funds: yet another industry that could be easily supplanted by gold and no one would even notice.
The best part of this report comes at the end:
right on, or platinum.
http://expose2.wordpress.com
This guy is a real mutt. Ackman is not even close to someone like Kyle Bass, Hugh Hendry or Ray Dalio.
All I want is for hundreds of thousands of Occupiers to fan out inside of Walmarts all across America tomorrow to protest Black Friday. Everybody needs to pray for this to happen!
-John
http://johnu78.blogspot.com/2011/11/hassan-ghani-press-tv-correspondent.html
I was listening to James Chanos on youtube about China. He makes a great point. He said the Chinese have used capitalism to keep the commie elites in power.
He said the US elites are using socialism to stay in power (Goldman, MS, JPM, Citi, UAW, et al).
Ackman does not know when to say goodbye to an investment; case in point, he did wonders for GGP in 2009, and he should of just sold out and went on as the pps peaked, but no, it is still in his core holdings. Stupid narcissist: he is married to GGP and JCP right when the rug will be pulled from under them.
Love his reasoning for being invested in C:
Um....theres a reason why garbage trades under its BV!
...and lastly his recent(ly leaked) investment in the Canadian Pacific Railway.
Railways are a 'WINNER'
a subsidised and propped up bankrupt transport system. Smells like success to me!
...only Govts are stupid (and corrupt) enough to keep backing this 100 year past its sell-by-date moronic junk on retarded rails
Well Govt and Warren Buffet ...and now Bill Ackman ...i feel a losing streak coming on!
Given the increase in the volume of requests for account transfers, we wish to remind youof the five-day notice period required for us to complete the relevant paperwork. Pleasenote the December 26th cut-off date for December 31, 2011 transfers.
Yes, they move the market or the stock they are investing in when buying large positions. But, the same holds true when they are selling their positions.
Like Buffet, who raised IBM to its high while he was buying. Yet, when he is done buying it has to come down as there is no longer a buyer on the pull backs.
Too Big To Succeed in the great De-Leverance. The Too Small To Attract Money have the Advantage, more now than ever in this 7 x Seven-year cycle.