Bill Ackman's Top 5 best deals

Bill Ackman,Dealroom has a profile for this one. Try Dealroom → a renowned hedge fund manager, has built a reputation for making bold and highly profitable investments. From turning a $60 million investment in General Growth Properties into $1.6 billion, to earning $2.6 billion from a timely Covid-19 hedge.



Here are his top 5 deals:

In 2008, Ackman invested $60 million in the struggling mall operator General Growth Properties as it neared bankruptcy. He recognized the underlying value of its real estate assets despite the financial crisis. Ackman's firm helped restructure the company and eventually took it public again. This bold move turned his $60 million investment into a staggering $1.6 billion, marking one of the most profitable hedge fund trades in history. The deal showcased Ackman's ability to identify undervalued assets and navigate complex financial restructurings.

In early 2020, as the Covid-19 pandemic began to unfold, Ackman made a prescient move. He invested $27 million in credit default swaps, essentially betting that the pandemic would cause significant market disruption. As global markets plummeted in March, Ackman's hedge paid off spectacularly, netting $2.6 billion in just three weeks - a 100-fold return. This trade not only protected his portfolio but also demonstrated Ackman's ability to anticipate and profit from major market events.

In 2011, Ackman acquired a 14.2% stake in Canadian Pacific Railway, viewing it as an underperforming asset. He waged a successful proxy battle to replace the CEO and several board members. Under new management, CP's efficiency and profitability improved dramatically. The stock price soared from $49 per share in 2011 to $220 by 2014. When Pershing Square sold its remaining 6.7% stake in 2016, the total profit was estimated at $2.6 billion, showcasing Ackman's skill in activist investing.

Ackman invested in Chipotle in 2016 when the restaurant chain was struggling with food safety issues. He saw potential in the brand and pushed for operational improvements. Under new management and with a focus on digital ordering and delivery, Chipotle's stock price has more than quadrupled since Ackman's initial investment. As of 2024, it remains one of his largest and most successful holdings, demonstrating his ability to identify turnaround opportunities.

In 2010, Ackman spun off Howard Hughes Corporation from General Growth Properties during its bankruptcy restructuring. He saw value in its diverse real estate assets and development potential. As chairman, Ackman has guided the company's long-term strategy. While not as explosive as some of his other investments, Howard Hughes has provided steady returns and remains a significant part of Ackman's portfolio, showcasing his patience and long-term investment approach.

Sources:

Bill Ackman Portfolio, Holdings

Bill Ackman Portfolio and News

Billionaire Bill Ackman's 2024 Portfolio

Billionaire Bill Ackman's Best-Performing Stocks of 2024

Bill Ackman's Greatest Hits and Misses