Pershing Square Sells Out of Barnes & Noble - Why? 7 comments
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Pershing Square Capital Management, the hedge fund ran by Bill Ackman, has filed an amended 13G with the SEC and has disclosed a 0% ownership stake in Barnes & Noble (BKS). The 13G was filed due to its activity on December 22, 2008 and it completely sold out of its position in BKS. This is a pretty substantial change to its portfolio, considering that as of last 13F filing (which shows positions as of September 30, 2008), 4.4% of its portfolio was allocated to BKS. Now, it holds 0 shares. You can also view the rest of Pershing Square's holdings here.
Pershing Square Capital Management is a well known value/activist based hedge fund. The fund started in 2003 after Gotham Partners broke up. The past few years, it has had notable short positions in the bond insurers such as MBIA (MBI) and Ambac (ABK). Some of his activist positions include Target (TGT) and Borders (BGP). Simply put, Ackman is a smart man. We wrote about Mr. Ackman's recent speech at the Value Investing Congress as well as Ackman's lengthy interview with Charlie Rose. Furthermore, you can view one of Pershing Square's investor letters here.
Taken from Google Finance:
Barnes & Noble is primarily engaged in the sale of books. The Company's principal business is the sale of trade books (generally hardcover and paperback consumer titles, excluding educational textbooks and specialized religious titles), mass-market paperbacks (such as mystery, romance, science fiction and other fiction), children's books, bargain books, magazines, gift, music and movies direct to customers.
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This article has 7 comments:
Not really. He is more of a showman..
if you followed his attack on MBIA/Ambac while at Githam back in 2001, you would not think he was smart... It did not work for him back them, did it?These two shot themselves in the foot with subprime CDOs, which they jumped into in 2005...
Now look at AIG.. Ackman was all about show again. Touting AIG at every corner, after taking a huge position in it, naturally... Meanwhile, AIG's troubles from its financial services unit (read another MBIA/Ambac), were even more severe than monolines'..
Like I said, its all glitz, no real substance..
By all means you're completely entitled to your opinion and I respect that. You bring up good points regarding MBIA/Ambac, but he still has performed quite well. I guess I should have included the performance figures where he finished -12% or so for 2008, compared to s&p -35% and tons of other hedge funds blowing up. All things considered, he's performed well. And, if I had told you that some random joe schmoe had a portfolio of target, borders, barnes & noble and finished the year only -12%, you'd have to give some kudos. I personally think there's substance in his rationale and thinking and its illustrated in that charlie rose interview I linked to. But, fair enough, agree to disagree hah. Thanks for your comment!
Rantall,
While I personally agree with you that the bookstore holdings are 'questionable,' I still think he's proven he knows what he's doing. Those two positions are the major ones I would say I don't understand. Watch the lengthy interview with Charlie Rose I linked to, that's where his brilliance shines.
jegan ;-
We noted in the article that in the SEC filing he sold out December 22nd, 2008.