Pershing navigates the storm
Wed Apr 30, 2008
Bill Ackman’s activist positions, like Target, may be worrisome, but his short bet on MBIA is bailing him out for now. That’s allowing him to raise capital and make new investments at a time when others are proclaiming the death of activism.
Activists are facing hard times, but Bill
Ackman has been through worse.
By Julie Dalla-Costa
The first thing Bill Ackman sees when he comes to work each
morning is the shiny jet propeller that hangs on the entry wall
of the midtown New York office of Pershing Square Capital
Management, the hedge fund firm he founded in 2004. A symbol of
Ackman's resolve to keep going in any kind of rough investment
weather, it's the kind of motivation that comes in handy these
With the buyout, real estate, credit and stock markets all
in turmoil, activists such as Ackman who were the market's
darlings during the recent sunny years have hit a pocket of
turbulence. Given the concentrated bets, leverage and real
estate focus that have been Pershing Square's hallmark, few
might seem more exposed. The firm had its worst month ever in
February, when it was down 6.2%...
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