Ackman Expands on His Realty Income Short

Below is hedge fund Pershing Square Capital Management's presentation on its short position in Realty Income (O). We've covered the basics of Pershing's short earlier on and now here's your chance to see more specifics as to why the fund thinks Realty Income will eventually have to cut its dividend; an action that could potentially send its large retail investor base fleeing.

Ackman will be presenting at the Value Investing Congress which is taking place in New York both today and tomorrow so we'll have to see if he further elaborates on this short or whether he presents a different investment idea. Ackman's presentation of his short in 'O' comes from the Great Investors Best Ideas conference and you can see what other hedge fund managers presented here.

Embedded below is Pershing Square's short case for Realty Income (O):



Alternatively, you can download the .pdf here.

Comments

[overbet:]

why are people using scribd it is the absolute worst.

Oct 20 11:27 PM

[Eagle68:]

One has to wonder about Ackman's motives. This past year we've seen many healthy stocks ruined by the short sellers.

Oct 21 08:15 AM

[Old Trader:]

One things that concerns me about Ackman's short position in O is that he was correct with Allied Capital (ALD). He may have been a bit early, but he sure was correct.

Oct 21 11:46 AM

[Short Bus:]

Oh Really !!!!!

Name a couple of these "HEALTHY STOCKS" which were ruined by short sellers !!!!

Healthy companies are able to easily survive bear raids, weak ones collapse. I suppose you considered GM, FNM, FRE, etc ... all healthy companies.

To survive a bear raid, a company just has to announce a stock buyback plan, or raise their dividend or demonstrate future earnings growth or similar actions to immediately halt the bear raid. Weak companies can not do these things, which is why they do not survive.

On Oct 21 08:15 AM Eagle68 wrote:

> One has to wonder about Ackman's motives. This past year we've seen
> many healthy stocks ruined by the short sellers.

Oct 21 02:51 PM

[AMP123:]

I agree with Overbet. Dump Scribd.


On Oct 20 11:27 PM overbet wrote:

> why are people using scribd it is the absolute worst.

Oct 21 03:01 PM

[square to t...:]

Guns dont kill people. People do. Short sellers didnt ruin stocks. Poor government policy, terrible corporate governance at the board level, terrible risk management by executives, greed, and disregard for shareholders' interests ruined stocks.

I'm long in this market, with a few minor puts on some REIT's and some retailers. But short sellers provide clarity and an alternative view to the bull consensus. This is valuable in determining price discovery over the long term in the auction that is the stock market.

Yes, there were times when the market had a casino feel to it. It was not pretty. But as Ben Graham said, "Over the short run, the stock market is a voting-machine. Over the long run it is a weighing machine."

Oct 23 09:31 AM