Pershing Square 2018 Q3 Investor Letter: The Latest on Every Bill Ackman Stock Pick

Billionaire Bill Ackman of hedge fund Pershing Square is in the midst of a strong rebound in 2018 as he seeks to put his recent investing woes behind him. Following three straight years of losses, it looked like 2018 was going to be more of the same for Pershing Square, as the fund was down by 8.6% through the end of March. However, it’s been a different story since then, as 8.5% returns (net of fees) in Q3 have helped push Pershing’s year-to-date returns to 9.7% (net of fees) through November 13.

While Ackman’s stocks were hit hard in October like everyone else’s, losing 5.2% (net of fees), he noted that the latest earnings season was a great one for the companies in his 13F portfolio, which has allowed them to quickly recoup much of those losses. He also looked on the bright side of the market decline, pointing out that it becomes easier for active stock-repurchasing companies like several in Pershing Square’s portfolio, including SBUX, ADP, HLT, and LOW, to buy back their shares at a discount, which should boost their value long-term.

In his latest investor letter, Ackman provided detailed analysis and updates on every single position in the fund’s 13F portfolio, as well as new stock pick Starbucks Corporation (NASDAQ:SBUX), which was bought in early-October and thus did not feature on the fund’s latest 13F filing, and Mondelez International, Inc. (NASDAQ:MDLZ), which Ackman sold out of during Q3.

Other stocks discussed in the letter include Hilton Worldwide Holdings Inc. (NYSE:HLT), Automatic Data Processing, Inc. (NASDAQ:ADP), Restaurant Brands International Inc. (NYSE:QSR), Chipotle Mexican Grill, Inc. (NYSE:CMG), Lowe’s Companies, Inc. (NYSE:LOW), The Howard Hughes Corporation (NYSE:HHC), Platform Specialty Products Corporation (NYSE:PAH), and United Technologies Corporation (NYSE:UTX), which Ackman has been trying to break up alongside Dan Loeb of Third Point.

You can download a copy of Pershing Square’s Q3 investor letter here.