Pershing Square Capital Management is a New York-based hedge fund founded by billionaire investor Bill Ackman. Pershing’s 13F portfolio had a total value of $5.41 billion at the end of Q3. It has been a pretty tough year for Pershing as Ackman’s bets on Herbalife and Valeant disappointed investors, resulting in some money pullout. In October, Reuters reported that Pershing Square Capital Management had started offering new fee arrangements to avoid further investor flight. In this article, we will talk about Ackman’s top moves in the third quarter.
Air Products & Chemicals, Inc. (NYSE:APD)
– Shares Owned by Pershing Square (as of September 30): 4.35 million
– Value of Pershing Square’s Holding (as of September 30): $605.14 million
Ackman’s fund sold nearly half of its stake in Air Products & Chemicals, Inc. (NYSE:APD), dumping over 3.86 million shares of the company in the third quarter. Pershing now has a $605.14 million stake in the Pennsylvania-based chemical company. The company spun-off its electronic-materials business as Versum Materials in October. Air Products said it expects 2017 adjusted earnings per share of $6.25 to $6.50 and first quarter adjusted earnings per share of $1.40 to $1.50. In the fourth quarter, the company earned $2.01 a share on $2.46 billion revenue, above the forecasts of $1.98 EPS and $2.45 billion revenue. A total of 56 funds tracked by Insider Monkey were bullish on Air Products & Chemicals, Inc. (NYSE:APD) at the end of the third quarter.
Valeant Pharmaceuticals Intl Inc (NYSE:VRX)
– Shares Owned by Pershing Square (as of September 30): 21.59 million
– Value of Pershing Square’s Holding (as of September 30): $530.06 million
Pershing surprisingly retained its position in the beleaguered Canadian pharmaceutical company, having amassed 21.59 million shares. The total value of this position was over $530.06 million at the end of Q3. The stock has lost over 84% so far this year. Valeant’s problems started last year when it increased the prices of its two major drugs. The company reported third quarter EPS of $1.55 on $2.48 billion revenue, worse than the estimates of $1.75 EPS and $2.49 billion revenue. The company expects full fiscal 2016 EPS to come in at $5.30-$5.50, versus prior guidance of $6.60-$7.00 and the consensus of $6.45. Ahmet Okumus’ Okumus Fund Management owned 4.1 million shares of Valeant Pharmaceuticals Intl Inc (NYSE:VRX), as of the end of the third quarter.
On the next page, we will discuss Ackman’s rest of the Q3 moves.