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By Himfr Mary
Despite being recognized as a new generation of radical leader in the hedge fund managers, but William Ackerman my nose for this simple classification.
Ackerman, 43, is the Pershing Square Asset Management Corporation, the founder and head. He usually buy those companies he considers undervalued stocks, especially in the retail, catering and real estate industry, urging them to pursue strategic change, such as the sale of its proposed divestiture of some assets or branch of business, pushing up shares after the exit.
Ackerman’s Pershing Square currently manages assets of 70 billion U.S. dollars, from 2004 to mid-2007 rate of return of 32%, 12% loss in 2008, but in the subsequent performance of the company quickly recovered in 2009.
Has successfully invested in McDonald’s second-largest U.S. mall operator General Growth Properties, the second largest U.S. discount retailer Target department stores (Target Corp), the third largest U.S. hamburger chain Wendys International Inc and so on. Recently, Ackerman and “ambush” the third-largest U.S. department store JC Penney Co (hereinafter referred to as “JCP”) and wine, sports equipment and household products manufacturer,Fortune Brands.
“Lightning” attack
October 8, Ackermann is on a busy day indeed. Pershing Square, according to the report submitted to the SEC, the company already holds 11% shares of Fortune Brands Company and JCP 16.9% stake. Ackermann said in the report, JCP shares are undervalued, with whom he plans to discuss “the business, assets, capitalization, financial condition, operations, management, strategy and future plans” and other issues.
Ackerman did not disclose which companies to Fortune Brands will be the reform proposals, but the company has said Fu Jun, Ackerman will be meeting to discuss in the near future, both sides expressed hired a professional consultant.
October 8, Ackerman also “take over” the current economic situation the most difficult of the two debt – residential and commercial real estate. According to Bloomberg, Ackerman announced that a new company will serve as the chairman of Howard Hughes Corp and holds 24% shares of the company. The company is owned by the General Growth losses from commercial and residential real estate assets stripping, General Growth is part of the plan out of bankruptcy.
It is reported that, General Growth 43 states in the United States owned or operated more than 200 shopping centers. However, due to excessive expansion in the real estate bubble, in April 2009 the company was forced to file for bankruptcy protection, becoming the largest in U.S. history with the real estate bankruptcy cases, the company has plans to spin-off restructuring and refinancing out of bankruptcy.
“Investment in shares of the company may one day make money. But in the current market conditions, it is difficult to measure the value of its assets. The value of the assets of the company who will present different investors with different results.” Analyst at Credit Suisse Group pointed out in the report.
“This is some of the extraordinary and irreplaceable asset restructuring, it has a long-term investment value.” Ackerman said he would hold the company at least ten years or so.
For Ackerman’s move, some analysts said: “This is a typical contrarian, he is buying all those who have been forgotten, a poor reputation in the market was undervalued assets.”
Activist investors
Executives of listed companies among the first to “awake at night” and “corporate raider” appears in the 80’s, they usually purchase shares of listed companies, the management cut costs force the expansion of overseas business, Carl Icahn is one of the representatives.
This has become a very popular way. According to consulting firm Hedge Fund Solutions of Philadelphia’s data, the U.S. claimed to be the number of aggressive hedge fund investors has grown from 20 in 1998 to less than rapid expansion to more than 200.
Two New York University Stern School of Business Professor of the radical 155 hedge fund managers of the transaction and found that 60% of the circumstances under which they can allow the company acquiesced to their request.
Radical successful hedge fund managers is one of the reasons shareholders willing to compromise with them, do not want a durable power of attorney lost his battle for shareholders of seats facing the embarrassing situation. When the radical requirements of hedge fund managers become the mainstream public when requested, the Board will treat this issue more carefully.
But even in aggressive hedge fund managers, Ackerman is also considered to be a bit unusual. “He was a greedy capitalist.” University of Minnesota Carlson School of Business finance professor Tim Nantell said, “but the greedy capitalists are looking for the $ 1 that does not waste any company, and the greed of the capitalists will make the company more efficient. ”
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