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Reuters – Bill Ackman, founder of the Pershing Square hedge fund, has joined the board of bankrupt shopping mall operator General Growth Properties Inc, where he is a large shareholder.
Ackman is the founder and managing member of the general partner of Pershing Square Capital Management L.P. Pershing and its affiliates own slightly less than 7.5 percent of General Growth’s outstanding common stock, the company said late on Friday.
Ackman has said he could gain 13 times his investment in the company once it is reorganized, calling General Growth "high quality."
Times and Democrat – Activist shareholder William Ackman sought for months to replace four incumbents on the Minneapolis-based retailer’s board of directors with five of his own picks, including himself.
The head of Pershing Square Capital Management, which has a 7.8 percent stake in Target, has argued that the cheap chic discount retailer, which has stumbled as shoppers focus on basics, needed new perspective. He said it especially needed to beef up its board in the areas of retail and real estate to better compete with its chief rival, Wal-Mart Stores Inc., based in Bentonville, Ark.
Shareholders rejected those arguments at their meeting outside Milwaukee Thursday. They also sided with the company in approving a measure that sets the board’s size at the current 12 members, instead of the 13 that Ackman had wanted.
Daily Times – Less than three weeks ahead of what’s expected to be a heated proxy contest at Target’s annual shareholders’ meeting, activist shareholder William Ackman aims to strengthen his case to investors for a new slate of directors by personally introducing his roster at a town hall meeting here Monday.
According to documents filed Friday with the Securities and Exchange Commission, Ackman, who runs Pershing Square Capital Management, which owns a 7.8 percent stake in the discounter, intends to “improve Target’s board and consequently, help make Target a stronger, more profitable and more valuable company.”
Reuters – The battle for board seats at Target Corp heated up on Tuesday when Pershing Square Capital Management called the current directors "suboptimal" after the retailer said the hedge fund has a "risky agenda.
The New York-based hedge fund, which owns about 7.8 percent of Target’s shares, and the Minneapolis-based retailer fired off a string of regulatory filings on Tuesday as the battle for votes intensified before the May 28 annual meeting.
New York Times – William A. Ackman makes a lot of noise for someone in the hush-hush business of hedge funds. He harangues executives, goads boards, talks this stock up and that one down — all in search of profit.
On Thursday, someone listened. After a campaign by Mr. Ackman that had lasted for months, one of the nation’s largest operators of shopping malls, General Growth Properties, filed for bankruptcy protection.
Now Mr. Ackman, who runs a hedge fund called Pershing Square Capital Management, is positioning his fund to pick up the pieces. Pershing controls 25 percent of General Growth and will play a crucial role in restructuring the company. If Mr. Ackman gets his way, he and his investors could walk off with hundreds of millions of dollars in profits.
New York (HedgeCo.Net) – Hedge fund manager William Ackman of Pershing Square Capital Management is in talks with discount retailer Target to nominate some potential members to their board of directors, according to a recent Securities and Exchange Commission filing.
The hedge fund currently holds a 9.7 percent stake in the Minneapolis-based company, but has been vocal about its disappointment relating to plummeting share prices and lagging sales.
Earlier this week, Target confirmed their fourth-quarter profit fell 41 percent. Shares closed at $27.82 yesterday, a 50 percent tumble since its peak last September.
Ackman did not state how many board members he wished to nominate, or who they were. He also said he may decide to up or reduce his stake in the company, although he still believes there is plenty of potential in the retailer.
Ackman made a bold move earlier this year, when he allowed investors to withdraw as much of their capital as they liked in his Pershing Square IV Fund. The fund, which was heavily invested in Target, plunged 90 percent this year, prompting an apology to investors and a green light to clear their cash out. Ackman contributed $25 million of his personal funds to help pay back clients of the fund.
Julie Scuderi Senior Editor for HedgeCo.Net Email: julie@hedgeco.net
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New York (HedgeCo.Net) – William Ackman, who runs hedge fund Pershing Square Capital Management, is letting clients withdraw as much of their investment as they please. A vast change from the dozens of hedge funds who rushed to halt redemptions, Ackman is personally stepping up to the plate, apologizing profusely for one of his fund’s performance and allowing investors to reclaim their cash.
Pershing Square IV, the fund started by Ackman two years ago, was supposed to reap returns by betting that the stock of Target Corporation would rise sharply. Instead, share prices at the discount retailer have done just the opposite, causing the fund to plunge 90 percent this year.
Ackman sent a letter to investors, describing his fund as “one of the greatest disappointments of my career to date.” He also personally threw in $25 million to help pay back frustrated investors. For those who wish to withdrawal what is left of their investment, they will be paid in March. For clients who invest in his other hedge funds, Ackman has declared that he will not charge a performance fee until the current losses are recouped.
While Ackman’s actions are no doubt admirable, many hedge funds are choosing to go the other route; forcing investors to stay locked in until unfavorable market conditions pass. Hedge funds like RAB Capital, Citadel and Fortress have all imposed restrictions on withdrawals following losses. Some are hoping that Ackman’s moves will start a new trend; one where investors can rightfully take what’s there’s, in addition to taking the fall for disappointing investments by forgoing their standard fees.
Julie Scuderi Senior Editor for HedgeCo.Net Email: julie@hedgeco.net
HedgeCo.Net is a premier hedge fund database and community for qualified and accredited investors only. Membership on www.hedgeco.net is FREE and EASY. We also offer FREE LISTINGS for Hedge Funds! Be sure to check out our sister sites. www.hedgefundlounge.com, www.hedgefundtools.com, and www.hedgefundemployment.com
New York Times – In a move that could force similar changes at other money-losing hedge funds, the well-known fund manager William A. Ackman is cutting his fees and allowing investors to take what is left of their money from one of the funds he manages.
Mr. Ackman, who runs Pershing Square Capital Management, is suffering huge losses on a fund he started nearly two years ago to bet solely on the rise of the stock of the discount retailer Target Corporation.
The fund, called Pershing Square IV, is down nearly 90 percent this year, and Mr. Ackman has been feeling pressure from investors who want to take their money out. In an effort to mollify those investors, Mr. Ackman apologized for the losses in a letter sent on Sunday. He personally committed $25 million to the fund to help pay investors.
Bloomberg – William Ackman’s hedge fund that invests in Target Corp. fell 68 percent last year, more than double the loss by the second-largest U.S. discount chain.
Pershing Square IV declined 7.7 percent in December alone, according to a letter to investors from Pershing Square Capital Management LP. Ackman and Pershing spent about $2 billion in 2007 for a stake in Minneapolis-based Target. Ackman has since pressed Target to buy back shares, sell its credit-card unit and extract more value from its real estate.
Ackman, who controls 9.5 percent of Target, proposed last year that the company place the land under Target stores into a real estate investment trust that would lease the property back to the retailer. The New York-based investor has argued that such a move would free up cash for the company and result in a higher valuation.
Pershing Square IV’s loss last year followed a decline of 43 percent in 2007. The fund is structured so its returns to investors double the stock’s movement.
