Bill Ackman’s Pershing Square Capital Management LP is unloading its entire stake in Canadian Pacific Railway Ltd., almost five years after sparking a turnaround at the company and becoming its biggest shareholder.
“Canadian Pacific has completed an incredible transformation since our initial investment in 2011,” Ackman said in a statement
Pershing Square Capital Management has made no new large public investments for roughly a year. After dumping most of his position in animal health company Zoetis ZTS +0.67% this spring, Pershing Square is now exiting Canadian Pacific after a five year investment during which Ackman oversaw one of the great corporate turnarounds in recent memory. Ackman first invested in Canadian Pacific in the fall of 2011 with a plan to unseat the company’s management and bring in new leadership that could make the Calgary-based railroad more efficient. The play was a watershed for Ackman and hedge fund activists broadly.
Canadian Pacific has been one of the Bill Ackman's biggest-ever winners, generating $2.6 billion in total gains, or an almost fourfold gain, according to public filings and a source familiar with the situation.