Bill Ackman Ditches Stakes in United Technologies, ADP

August 7, 2019 | Hedge Funds, News
https://dailyalts.com/wp-content/uploads/2019/07/Cat-hedgefunds.png

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.


Alt Insights

May 21, 2020

Venture Capital: British Startup Offers Travel Jaunts on the Never-Never

Venture Capital: British Startup Offers Travel Jaunts on the Never-Never
Shape

Latest Alternative Investment News

https://dailyalts.com/wp-content/uploads/2020/05/60-40-Chilled-metallic.png
Liquid Alternatives: RIP 60:40. Liquid Alts Solve the New Equation
May 22, 2020     Latest News, Liquid Alternatives, News

Volatile equity markets and declining fixed income yields have turned the traditional 60:40 portfolio allocation between stocks and bonds on its head. According to one study, an investor would today…

https://dailyalts.com/wp-content/uploads/2020/05/42156310244_f396820bbc_c-CRYPTO-MINING-RIG.jpg
Digital Assets: The Texas Grid Pays Thiel-backed Layer1 to not Mine Cryptos in August
May 22, 2020     Digital Assets, News

Layer1, the bitcoin miner backed by the likes of top-flight VC Peter Thiel and early-stage investor Shasta Ventures, based its operations in west Texas to take advantage of cheap power….

https://dailyalts.com/wp-content/uploads/2020/05/share-missfresh.png
Venture Capital: Beijing-based start-up Missfresh May Soon Nab $500M
May 22, 2020     News, Venture Capital

The Covid-19 has boosted the fortunes of online grocery delivery start-up Missfresh. Locked-in families have stepped up their demand for groceries and fresh foods to be delivered at home amidst…

https://dailyalts.com/wp-content/uploads/2020/05/visa-2623015_640.png
Fintech: Visa Enters an Investment and Strategic Partnership with GoodData
May 22, 2020     FinTech, News

Global analytics firm GoodData announced it had received an investment from Visa Ventures, the corporate venture investment division of payments giant Visa (NYSE: V). GoodData also said the two companies…

Scroll to Top