The Only 10 Stocks Hedge Fund Manager Bill Ackman Owns
Bill Ackman's Pershing Square Capital Management LP released its holdings for the first quarter. Ackman likes to make big targeted bets and generally looks for a wide spread between price and the value he perceives. Given this, the hedge fund only held 10 positions at the end of the first quarter of 2012.
Canadian Pacific Railway (CP) is the largest position, making up more than 22% of the portfolio. Ackman initiated this position during Q3 2011. The Canadian railroad's shares are definitely headed in the right direction and delivering solid returns for Ackman's fund, handily beating the S&P 500.
The top 5 positions make up 82% of the portfolio. The other largest bets include J.C. Penney (JCP), General Growth Properties (GGP), Beam (BEAM) and Citigroup (C). J.C. Penney is the only real loser in the group now down nearly 20% YTD. YCharts covered the hiring of Ron Johnson, former retailing chief at Apple back in April. He brought some immediate shine to JCP shares but it looks to have worn off already. Ackman told CNBC today that "this is the bottom for JCP down 18.9%." He thinks JC Penney has the right strategy and management team in place. The WSJ has posted the full JCP investment deck.
To round out the portfolio, Ackman has positions in Kraft Foods (KFT), Fortune Brands Home & Security (FBHS), Howard Hughes Corp. (HHC), Alexander & Baldwin (ALEX) and Family Dollar (FDO). All of these are outperforming with Fortune Brands and Howard Hughes posting the largest gains YTD.
You can access Bill's portfolio and also combine with additional screening criteria with the stock screener. All 10 stocks are probably worth a look given Ackman's track record.
Filed under: Investing Ideas