Billionaire Bill Ackman Was Loving Air Products & Chemicals, Inc. (APD) In Q2

Selling Mondelez. Following the breakup of Kraft, Pershing Square had taken a position in Mondelez International Inc (NASDAQ:MDLZ). Spinouts can sometimes be profitable investment opportunities as management becomes more able to focus on operations, and billionaire Nelson Peltz’s Trian Partners has bought up shares of both Mondelez International Inc (NASDAQ:MDLZ) and PepsiCo, Inc. (NYSE:PEP) as part of a plan to merge the two companies (find Peltz’s favorite stocks). Between April and June, however, Pershing Square dumped its entire position in the snack foods company. Mondelez International Inc (NASDAQ:MDLZ), as with many food stocks, has been bid up to a valuation of above 20 times trailing earnings, and of course some of this has been driven by speculators hoping that Pepsi will outright acquire the company.

We’re not particularly excited about shopping malls and similar retail opportunities, and so wouldn’t expect great performance in the future from General Growth Properties Inc (NYSE:GGP). Peltz’s work with Mondelez and Pepsi is worth following, but so far Pepsi seems averse to an acquisition and so we wouldn’t be joining the Mondelez bulls in buying the stock at its current price. Ackman’s past success in Canadian Pacific means we can’t dismiss his move into  Air Products & Chemicals, Inc. (NYSE:APD), and while the stock seems expensive the business has been growing its sales at a decent clip. If it could hold down growth in its costs then the company could have some upside and so we would keep an eye on Pershing Square’s conversations with management there.

Disclosure: I own no shares of any stocks mentioned in this article.