Monday, September 28, 2015

Bill Ackman vs Air Products & Chemicals

Air Products & Chemicals Inc., a target of activist hedge fund manager Bill Ackman, announced that its Board of Directors has decided to separate fully its Materials Technologies business via a tax-free spin-off to its shareholders before September 2016.

According to the company, the spin-off will allow Air Products' Industrial Gases and the Materials Technologies businesses to leverage their respective critical competencies and enhance their competitive positions. In other words, Air Products' board has decided to undertake this action to unlock value for investors.

After the spin-off completes, Air Products will be left with its industrial gases business. Air Products is one of the world's largest industrial gas companies. The company breaks air down into its individual products, oxygen, nitrogen and other components, which are then used in construction, healthcare, oil refining and other industries.

Air Products' management is separating the company into seven reporting segments, as part of a strategic plan to boost growth. Bill Ackman's Pershing Square Capital Management LP is the company's largest shareholder, with a 9.56% stake in the company as of June 30.

Ackman has been pushing Air Products to divest some of its more volatile business units to unlock value from the underlying business, which he believes is undervalued.

Bill Ackman believes that Air Products' could reach $200 plus over the next three years under the right leadership.

Air Products has been criticized for its top-down and bureaucratic corporate culture, which has stifled growth, cost the company market share and dented margins.

What's more, the company has ploughed capital into other, unrelated business, businesses Ackman believes are non-core and divert the company from its core mission.

Monday, September 21, 2015

Bill Ackman says Short Sellers help the market

Bill Ackman explains the benefits of Short Sellers in the stock market and how it helps with market transparency

Monday, September 14, 2015

Bill Ackman on David Tepper, stocks cheap

Bill Ackman feels more bullish than David Tepper's at the moment

Put aside Energy.... the rest of the markets I think stocks are pretty cheap. 

Currency [fluctuations] have been largely reflected in next year's [earnings] estimates. 

Talk to anyone who knows anything about China [growth], they'll tell you that 7 percent is fiction, 5 percent is probably a fiction, and real growth in China is something like 1 percent to 4 percent.

Herbalife short position

"We're principally a long-only fund, with the exception of Herbalife [short]. We own concentrated positions in companies. We own them for years," he said.

Mondelez long position

I can't tell you where any of our stocks are going to be next month. I can't even tell you where they are going to be at the end of the year. Mondelez will be a much more valuable company a year from now than it is today. Two years from now, it's going to be even more valuable.

Tuesday, September 8, 2015

Pershing Square latest numbers for August 2015

Hedge fund billionaire Bill Ackman joined the list of high profile managers who reported important losses on August 2015. Bill Ackman, who is worth about $2.6 billion, was considered as one of the best performing hedge fund managers in 2014.

According to Reuters, Ackman’s Pershing Square Holdings portfolio dropped by 9.2%, leaving it down to 0.1% for the year. The firm had previously reported gains of 10% at the end of July this year. In 2014, the fund gained 40%, beating Standard & Poor’s 13.7% gain.