Bill Ackman Ditches Stakes in United Technologies, ADP

August 7, 2019 | Hedge Funds, News

Activist manager Bill Ackman walks away from two positions.

Pershing Square Capital Management chief Bill Ackman is out of United Technologies (NYSE: UTX).

The outspoken activist manager chose to drop his stake in the defense company instead of fighting the firm’s planned takeover of rival Raytheon Corp. (NYSE; RTN).

The deal – expected to exceed $100 billion – is the latest in a string of high-profile mergers in the defense sector. Recently, senior military members came out in opposition to the deal over national security concerns.

But Ackman isn’t the only hedge fund titan opposed to the marriage between the two defense contractors. Third Point chief Daniel Loeb called the deal irresponsible and likened CEO Greg Hayes’ plan to “empire building.”

Pershing Square reportedly used the sale of its position and capital from a financing round to build a stake in an undisclosed firm.

Bill Ackman cuts stake in ADP

Ackman also ditched his stake in Automated Data Processing (ADP), according to multiple reports.

Pershing Square announced an 8.3% stake in ADP back in 2017. Ackman planned a proxy battle to replace three board members. Though ADP shareholders rejected his proxy battle, investors earned a return north of 50% since Ackman announced the stake. In addition, Pershing Square gained roughly $1.2 billion on its stake, according to an Ackman-penned shareholder letter seen Reuters.

“Our activism bore significant fruit,” he said. “As a direct result of our activism, ADP made commitments to accelerate revenue growth, bolster its competitive position in the enterprise market, and improve efficiency and margins.”

Pershing entered its position at an average of $114.76 per share. According to the same letter, Ackman exited the position at $167 per share on July 31.

In addition, Ackman said that despite his exit, he anticipates that ADP will see double-digit growth.

ADP was Ackman’s last high-profile board dispute. Ackman faced a rush of investor redemptions after losing positions in firms like Herbalife(NYSE: HLF) and Valeant Pharmaceuticals (NYSE: VRX).

Ackman reported a 45.3% gain during the first half of 2019.

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Latest Alternative Investment News
Alternative Investments: Accelerate Launches An ETF For Alternative Assets
November 25, 2020     Alternative Investments, News

Accelerate Financial Technologies launched its OneChoice Alternative Model Portfolio in September. Aimed at hard-pressed advisors and portfolio managers, the strategy offered a quick and easy way to put together a…
Digital Assets: Japanese Financial Group SBI Launches Crypto Lending
November 25, 2020     Digital Assets, News

SBI Group (TYO: 8473) is launching a crypto lending service through SBI VC Trade, its crypto-focused exchange subsidiary. SBI said it will initially allow customers to tender only bitcoin (BTC),…
FinTech: Hippo Insurance Gets $350M Funding From Mitsui Sumitomo Insurance
November 25, 2020     FinTech, News, Venture Capital

Hippo, the home insurance unicorn, announced Tuesday an investment of $350 million from Mitsui Sumitomo Insurance Company, Limited, a subsidiary of MS&AD Insurance Group Holdings, Inc. In July, Hippo raised…
Venture Capital: Astanor Ventures Launches $325M Fund For Impact Investing in Agtech

Based in Luxembourg, Astanor Ventures combines capital, technology, and sector expertise to invest in businesses that build regenerative, scalable, and nourishing food solutions. Using this philosophy, Astanor has invested in…