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Ackman says Pershing Square no longer has hedges on stocks

Stock MarketsMar 28, 2020 06:50PM ET
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© Reuters. Bill Ackman, chief executive officer and portfolio manager at Pershing Square Capital Management, speaks during the SALT conference in Las Vegas

(Reuters) - William Ackman's Pershing Square (NYSE:SQ) Capital Management no longer has hedges on its stock portfolio, but still has some cash to invest if equities decline further as the United States battles the coronavirus outbreak, the billionaire investor said on Saturday.

Pershing Square earned roughly $2.6 billion by hedging its stock portfolio in early March through credit protection on investment grade and high yield credit indices. Much of the money has been reinvested in stocks the firm already owns.

"Today, we are unhedged, and we no longer own any insurance", Ackman said in a Twitter thread https:// adding that he continues to believe the sooner the entire United States is shut down, the more lives will be saved and the sooner the economy will recover.

"Every day we wait, we prolong our collective misery", Ackman said.

He told CNBC in an interview on March 18 that he thought the best approach to killing off the coronavirus was to close the borders and shut down the entire country, barring essential services, for 30 days.

The S&P 500 (SPX) and the Dow Jones Industrial Average (DJI) fell sharply after the interview aired.

He later said the interview was not designed to enable his firm to profit from any trades, dismissing some media speculation that he had purposely pushed markets lower to make money off his hedges.

Ackman says Pershing Square no longer has hedges on stocks
 

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Comments (12)
Jeff Gordon
Jeff Gordon Mar 29, 2020 5:09PM ET
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He's 100% correct. This nonsense about opening and closing certain counties is pure crazy talk.
Tyler Phillis
Tyler Phillis Mar 29, 2020 3:18PM ET
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Ackman is a total bore: his position may be tactically sound, but this announcement is strategically stupid. The last time he announced his position and intent Carl Ichan ended up with over a billion of PS’s money in his pocket. Ackman’s investors should recognize that this guy is a ********factory; he always has one in his pants and the look on his face proves it!
jemin An
jemin An Mar 29, 2020 1:02AM ET
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He is saying market tumbles again, and he is waiting for it another trading.
Marcus Bovarie
Marcus Bovarie Mar 29, 2020 12:23AM ET
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at what time precisely did he give this interview? if he's actually stating his plays directly they could have changed
Kaveh Sun
Kaveh Sun Mar 28, 2020 8:56PM ET
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He covered his shorts the last 3 days. the market may bottom.
Ngoc Nguyen
Ngoc Nguyen Mar 28, 2020 8:56PM ET
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jesus christ after 10 years of a bull market, people just seems to lose their common sense...
Pro trader A
Pro trader A Mar 28, 2020 8:56PM ET
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we had 12 years of bull market. even after corona maket is being determined fall. we wil have corona affected pmi, economic index. -20%gdp grwoth. get it real. the market will fall 50%.
Tyler Phillis
Tyler Phillis Mar 28, 2020 8:56PM ET
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Pro trader A if you’re using economic factors alone to arrive at your trade ideas you’re always going to be wrong. Its liquidity first, economics second...
David David
David9 Mar 28, 2020 8:55PM ET
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He learned a big lesson before when he told the public about his Herbalife hedge.
Tyler Phillis
Tyler Phillis Mar 28, 2020 8:55PM ET
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It appears that he did not...he’s making the same mistake again. His ego seems to require public approval...which is revolting.
Kaveh Sun
Kaveh Sun Mar 28, 2020 8:55PM ET
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Tyler Phillis he could covered herbalife at a huge profit. His ego to be right, make the old man look like a fool, made him hold it too long. This time he covered at around 20% profit.
Kaveh Sun
Kaveh Sun Mar 28, 2020 8:55PM ET
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Tyler Phillis he could’ve covered herbalife at a profit. This time he covered.
Adri Mo
Adri Mo Mar 28, 2020 8:48PM ET
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NYSE:SQ ???????  Get your facts right before tarnish other companies reputation
Rob Omes
Rob Omes Mar 28, 2020 8:37PM ET
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I totally agree. Have some pain for a month...
Chris Martin
Chris Martin Mar 28, 2020 7:43PM ET
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Typical armchair quarterback when it comes to explaining "the play"... Who got "played" by this guy? Carl didn't-
Frederic Martin
Frederic Martin Mar 28, 2020 7:35PM ET
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Yeah no hedge just a fat cash stack lol
Lucas Zhuo
Lucas Zhuo Mar 28, 2020 7:31PM ET
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you did not tell others when you hedged the portfolio, and now you told everybody you longed the market (for your agenda).lol
Anony Mouse
Anony Mouse Mar 28, 2020 7:31PM ET
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wrong ticker. Pershing Square is $PSHZF
 
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