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Bill Ackman's Hedge Fund Is Killing It This Year

Julia La Roche   

Bill Ackman's Hedge Fund Is Killing It This Year
Finance1 min read

Bill Ackman

Reuters

While most hedge funds are struggling in 2014, Bill Ackman's Pershing Square is having a spectacular year.

According to the Wall Street Journal, Ackman's $13.7 billion Pershing Square Capital is up 18.7% for the year through the end of April.

To put that in perspective, the S&P 500 is up about 1.6% year-to-date. According to HFR's HFRX Equity Hedge Index, the average equity hedge fund is down -0.31% year-to-date.

Ackman is known for being a mostly long-only fund manager. The activist investor takes very large positions in a handful of companies.

His portfolio includes Air Products & Chemicals, Beam, Burger King, Canadian Pacific, Howard Hughes, General Growth and Procter & Gamble, his latest 13F filing shows.

Ackman recently disclosed massive stakes in pharmaceutical companies Valeant and Allergan. He's partnered with Valeant to pursue a takeover of Allergan. This investment helped his fund rise 7.3% in April, the WSJ noted.

Ackman is also notoriously short Herbalife, a multi-level marketing company that sells weight loss shakes. He rarely shorts companies. Ackman believes Herbalife operates as a "pyramid scheme" and that regulators will shut it down.

The FTC and a number of attorneys generals are investigating the company.

He has yet to break even on that short bet.

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