Let’s move on to the two largest equity holdings of Pershing Square, which did not incur any adjustments during the final three months of 2015. Bill Ackman’s investment vehicle held a 41.82 million-share position in Zoetis Inc. (NYSE:ZTS) at the end of 2015, which was valued at $2.00 billion and accounted for 16.09% of the fund’s equity portfolio. Earlier this week, the global animal health company released its financial results for the fourth quarter and full 2015 year, posting fourth-quarter revenue of $1.3 billion, a decrease of 3% year-over-year. Zoetis Inc. (NYSE:ZTS)’s 2015 revenue totaled $4.8 billion, which was flat relative to 2014. However, the company’s operational revenue, which excludes the impact of foreign exchange, grew by 8% year-over-year. At the same time, its adjusted net income for 2015 increased by 13% to $889 million, or $1.77 per diluted share. Let’s not forget to mention that Zoetis shares are down by nearly 12% in the past year. Cliff Asness’ AQR Capital Management owned 4.79 million shares of Zoetis Inc. (NYSE:ZTS) at the end of 2015.
Air Products & Chemicals Inc. (NYSE:APD) was Ackman’s largest equity holding at the end of December, comprising 20.55 million shares valued at $2.67 billion. The holding represented 21.46% of Pershing Square’s equity portfolio. The manufacturer of gases and chemicals has seen its stock decline by 14% over the past year or so. In a recent letter to investors, the activist hedge fund manager said that the stock is “the fifth most hedge-fund-owned stock in the index [S&P 500 Index], and hedge fund liquidations [due to increased market volatility] may, therefore, explain its substantial underperformance compared with its direct competitor Praxair since year-end”. Moreover, analysts at UBS, who have a ‘Buy’ rating on Air Products & Chemicals Inc. (NYSE:APD) and a price target of $151 on it, classify the stock as a defensive stock that can continue to generate double-digit EPS growth in the face of worsening macroeconomic conditions. It should be mentioned that Air Products & Chemicals is a dividend aristocrat that has increased its annual dividend payments for 38 consecutive years. John Griffin’s Blue Ridge Capital owned 1.60 million shares of Air Products & Chemicals Inc. (NYSE:APD) on December 31.