Tuesday, October 4, 2016

Sold entire stake in Canadian Pacific Railway

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.