Unveils a new $900M investment in the coffee shop
Bill Ackman’s Pershing Square hedge fund has taken a new position of $900M in Starbucks. The shares are up 2.69% at $58.07. The low for the year reached $47.37 on June 28th.
Ackman – who threw in the towel on Herbalife which helped contribute to net losses of -4% in 2017 and -13.5% in 2016 – has recovered nicely in 2018 with a 15.8% year to date gain through September. The gains have been helped by a 29% jump in ADP, an increase in Lowes, and a $100 million profit taken in Nike shares in just a few month position.
Is Baby Buffett back? (2015 Forbes cover might have been the kiss of death). Maybe this year, but he missed the bullish train of 2016 and 2017. The total returns for the S&P in 2016 was 11.96% and 21.83% in 2017.
He presented his latest investment at Grant’s Interest Rate Observer conference in NY.