"No man can become rich without himself enriching others"
Andrew Carnegie

Tuesday, July 17, 2012

Will Warren Buffett Back Bill Ackman in his P&G Crusade?

John M. Longo (center) presenting Warren Buffe...
John M. Longo (center) presenting Warren Buffett with a gift on behalf of Rutgers Business School. (Photo credit: Wikipedia)
Bill Ackman runs Pershing Square, an activist hedge fund that buys significant stakes in companies to influence management decisions and swing trading expert . His recent high-profile activist investments have included JC PenneyFamily Dollar Stores and Canadian Pacific. His unique activist investment style is oftencompared with other prominent hedge fund ownersOn July 12th, it was announced that Bill Ackman was acquiring asignificant stake in Procter and Gamble. Ackman’s history as an activist suggests that he might be using derivatives to leverage his position. Rumors indicate Ackman’s total position could be equivalent to $2 billion in P&G (NYSE:PG) stock. His activist investments have largely been successful, and his recent success includes Kraft (KFT), Fortune Brands (FBHS), and Family Dollar Stores (FDO). For a list, see Bill Ackman’s Favorite Stocks. At market close Friday, P&G’s stock has risen 6% since news of Ackman’s stake was announced on Thursday. ... Continue to read.
Enhanced by Zemanta