Hedge Fund: Pershing Square Capital Sells Starbucks Stake

https://dailyalts.com/wp-content/uploads/2019/12/Bill_Ackman_26410186110_cropped.jpg

Ackman cashes out with a 73% gain in just 19 months.

Pershing Square Capital has exited its stake in Starbucks Corporation (NASDAQ: SBUX). According to reports, Bill Ackman’s hedge fund announced the divestiture during an investor presentation today.

The presentation said that Starbucks is “firing on all cylinders” and that today’s “market now has a much better understanding of Starbucks’ business quality and growth potential.”

Pershing Square Capital earned a 73% return in 19 months with this stock.

Starbucks has stalled out, however, in recent months. It faces increasing competition from Chinese competitors Luckin Coffee (NASDAQ: LK). It also recently closed a large number of stores in China due to the ongoing spread of the coronavirus.

Pershing Square Capital Continues to Outperform

Bill Ackman’s hedge fund saw a net 58.1% return in 2019. That return followed four years of losses. The firm had a costly loss betting against Herbalife Ltd (NYSE: HLF). It also had failed investments in Valeant Pharmaceuticals and Bausch Health Cos. (NYSE: BHC).

Pershing Square Capital has taken two new positions in recent months. It purchased a passive stake in Warren Buffett’s Berkshire Hathaway (NYSE: BRK.B) and Agilent Technologies (NYSE: A).

Pershing’s current portfolio also consists of:

  • Chipotle Mexican Grill (NYSE: CMG);
  • Hilton Worldwide Holdings (NYSE: HLT);
  • Howard Hughes (NYSE: HHC);
  • Fannie Mae (OTC: FNMA);
  • Freddie Mac (OTC: FMCC);
  • Restaurant Brands International (NYSE: QSR), and;
  • Lowe’s (NYSE: LOW).

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.


Shape

Latest Alternative Investment News

https://dailyalts.com/wp-content/uploads/2020/09/cami-3724921_640.jpg
Alternative Investments/ESG: World’s First Actively Managed Sharia ETF To Debut in London

Almalia is a financial services group focused on innovation in Islamic finance, especially Shariah-compliant investments that are also sustainable and ethical. Headquartered in London, and having a presence in the…

https://dailyalts.com/wp-content/uploads/2020/09/money-1428584_640.jpg
Venture Capital: GGV Capital Raising $2B Warchest For Three New Funds
September 28, 2020     News, Venture Capital

GGV Capital, a leading U.S. based venture capital firm, is raising $2 billion for three funds that will invest in tech startups and growth companies in the U.S. and China.

https://dailyalts.com/wp-content/uploads/2020/09/screenshot-www.target.com-2020.09.28-12_43_22.png
FinTech: Target To Test BNPL Waters With Sezzle
September 28, 2020     FinTech, News

Shoppers are making a beeline for offers that allow them to pay for their purchases in instalments. Also known as BNPL products, these instalment facilities, generally interest- and fee-free, are…

https://dailyalts.com/wp-content/uploads/2020/09/montreal-506130_640.jpg
Artificial Intelligence: Squarefeet.AI Is Setting Real Estate Prices In Montreal
September 28, 2020     Artificial Intelligence, News, Real Estate

Squarefeet.ai uses artificial intelligence (AI) to optimize the unit pricing of new residential condo or rental projects, ensuring developers obtain the highest potential revenue. Its algorithm-based platform enables property developers…