A Look at Bill Ackman’s Top Bets for Q4

In Mondelez International Inc (NASDAQ:MDLZ), Pershing disclosed a $1.82 billion stake that amassed 43.37 million shares. In August, Ackman reported a new 7.5% stake in the company that contained 120.27 million shares, so from what it looks like, the investor decided to trim his exposure to the company shortly afterwards. Mondelez International Inc (NASDAQ:MDLZ)’s stock is down by around 3% since Pershing reported its position, but Ackman is betting on the company’s long-term run, saying in an investor letter that Mondelez has a lot of room to grow and to increase its margins (see article). Nelson Peltz’s Trian Partners is also bullish on Mondelez International Inc (NASDAQ:MDLZ), owning 48.03 million shares.

Last but not least, in Zoetis Inc (NYSE:ZTS), Pershing owns 41.82 million shares worth $1.72 billion. Zoetis’ stock lost over 14% in the third quarter amid an overall market decline that was particularly sharp in the healthcare sector. However, year-to-date the stock is still 6% in the green. Zoetis Inc (NYSE:ZTS) is one of the largest animal health companies in the world, which should give it a clear advantage in front of its competitors. The company has consistently outperformed the estimates in its financial statements for the past several quarters and most analysts are bullish on its stock, assigning a consensus ‘Buy’ rating to it. A couple of weeks ago, Piper Jaffray and BMO Capital Markets reiterated their ‘Overweight’ and ‘Outperform’ ratings and raised their price targets on it to $58 and $54, respectively. Cliff Asness’ AQR Capital Management also sees value in Zoetis Inc (NYSE:ZTS), adding 2.13 million shares to its stake, reporting ownership of 5.07 million shares as of September 30.

Disclosure: None