© Reuters. FILE PHOTO: Ackman, CEO of Pershing Square Capital, speaks at the WSJ Digital Conference in Laguna Beach
By Svea Herbst-Bayliss
BOSTON (Reuters) – Billionaire hedge fund manager William Ackman touted the success of his funds on Friday. He cited attractive valuations on his holdings and said he has up to $ 7 billion to invest in a private company while opening up stock ownership to all Americans is key to political stability.
For the second year in a row, Ackmans Pershing Square Capital Management has achieved double digit returns with a 44.1% increase in its Pershing Square Holdings portfolio. Four out of nine portfolio companies, including Lowe & # 39; s (N 🙂 and Chipotle Mexican Grill (N :), grew despite the Covid-19 outbreak.
"Our current holdings remain attractively valued and offer significant additional profit potential over the long term," Ackman wrote to investors, adding that those in the red, including Hilton Worldwide (N :), "will recover in the long term."
Ackman, one of Wall Street's best-known hedge fund managers, said his company would take a minority stake in a target company, and potentially make one after it founded the largest Special Purpose Acquisition Company (SPAC) to date, the private company public helps He is a more attractive investor than strategic buyers who want control.
Ackman said he spoke to potential targets and said his company's "idea generation engine is intact and productive".
Investors were willing to allocate up to $ 12 billion for the SPAC, Tontine wrote, Ackman wrote. "We took advantage of the excessive demand following PSTH's IPO to create a list of shareholders that any publicly traded company would envy."
Ackman, who called for a shutdown in March to curb the spread of Covid, said wider access to the stock market is imperative. "We need a program that will make every American owner of the growing value of Corporate America," he wrote, suggesting a government-funded account for every American-born child.
"Americans who are not involved in the success of capitalism and are suffering economically are more motivated to turn to socialism or other alternatives."
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