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Ackman says Pershing Square no longer has hedges on stocks

Published 03/28/2020, 06:47 PM
Updated 03/28/2020, 06:50 PM
© 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.

Latest comments

He's 100% correct. This nonsense about opening and closing certain counties is pure crazy talk.
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!
He is saying market tumbles again, and he is waiting for it another trading.
at what time precisely did he give this interview? if he's actually stating his plays directly they could have changed
He covered his shorts the last 3 days. the market may bottom.
jesus christ after 10 years of a bull market, people just seems to lose their common sense...
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%.
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...
He learned a big lesson before when he told the public about his Herbalife hedge.
It appears that he did not...he’s making the same mistake again. His ego seems to require public approval...which is revolting.
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.
he could’ve covered herbalife at a profit. This time he covered.
NYSE:SQ ???????  Get your facts right before tarnish other companies reputation
I totally agree. Have some pain for a month...
Typical armchair quarterback when it comes to explaining "the play"... Who got "played" by this guy? Carl didn't-
Yeah no hedge just a fat cash stack lol
you did not tell others when you hedged the portfolio, and now you told everybody you longed the market (for your agenda).lol
wrong ticker. Pershing Square is $PSHZF
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