gfp Posted June 25, 2015 Share Posted June 25, 2015 PSH sold $1 Billion in 7 year bonds at 5.5%. More ideas than capital I guess. http://pershingsquareholdings.com/media/2015/06/PSH-Pricing-Press-Release.pdf Link to comment Share on other sites More sharing options...
giofranchi Posted June 25, 2015 Author Share Posted June 25, 2015 PSH sold $1 Billion in 7 year bonds at 5.5%. More ideas than capital I guess. Or also trying to take advantage of a very low cost of money? ;) Gio Link to comment Share on other sites More sharing options...
gfp Posted June 25, 2015 Share Posted June 25, 2015 I think he said on a conference call that the bond issue is to add size for his big target that will be announced in a month or so. 5.5% for 7 years isn't particularly cheap money - but it's more permanent than a margin loan. Makes me think the large target is an activist position and not a 3G type investment where he doesn't want to change much. Whatever the target is, it's likely bigger than $50 Billion MC. Link to comment Share on other sites More sharing options...
Haasje Posted June 25, 2015 Share Posted June 25, 2015 >$50B? How much does he have available including the bond raise? Link to comment Share on other sites More sharing options...
gfp Posted June 25, 2015 Share Posted June 25, 2015 I was implying that the target company has a market cap higher than $50 Billion. He probably has $22 Billion or so available across the funds plus whatever additional leverage he wants to employ. Link to comment Share on other sites More sharing options...
gfp Posted June 25, 2015 Share Posted June 25, 2015 Something's up with Zoetis, looks like a VRX bid is the rumor Link to comment Share on other sites More sharing options...
Phaceliacapital Posted June 26, 2015 Share Posted June 26, 2015 Come on, Zoetis looks expensive on any measure :D Link to comment Share on other sites More sharing options...
giofranchi Posted July 3, 2015 Author Share Posted July 3, 2015 June 2015 Performance Report GioPerformance-Report-June-2015-PSH.pdf Link to comment Share on other sites More sharing options...
GFRhodes Posted July 17, 2015 Share Posted July 17, 2015 Gio and others, thanks for introducing this very interesting idea. Just wondering what you think about the structure of the fees? I have Buffett in mind: when he transitioned investors from the partnerships to "permanent capital" in BRK, he stopped charging a performance fee and instead took a nominal salary and put almost all his net worth in the stock. It was perfect alignment. I know Ackman is offering PSH shareholders a fee at least one fifth lower than his other funds... but imagine for a second this was any other company instead of a hedge fund: how would you feel reading a proxy statement with these terms? Please don't get me wrong. I'm intrigued by the idea of Pershing 2.0 and recognise that historic performance net of fees has been exceptional. I'm just not sure how I would feel about this structure five years down the line when PSH looks more like a holding company and less like a portfolio. Link to comment Share on other sites More sharing options...
giofranchi Posted July 17, 2015 Author Share Posted July 17, 2015 Just wondering what you think about the structure of the fees? Please, take a look at the discussion about Nomad Foods, if you are interested in knowing my view on compensation. Cheers, Gio Link to comment Share on other sites More sharing options...
giofranchi Posted July 17, 2015 Author Share Posted July 17, 2015 http://www.thestreet.com/story/13165392/1/what-activist-hedge-funds-are-and-how-you-can-benefit.html http://www.thestreet.com/story/13218727/1/what-activist-hedge-funds-are-part-2--picking-the-best-strategies.html?utm_content=buffer3c83d&utm_medium=social&utm_source=twitter.com&utm_campaign=buffer Gio Link to comment Share on other sites More sharing options...
giofranchi Posted July 22, 2015 Author Share Posted July 22, 2015 Activist principles at play: Ackman http://video.cnbc.com/gallery/?video=3000397760&play=1 Gio Link to comment Share on other sites More sharing options...
muscleman Posted July 22, 2015 Share Posted July 22, 2015 Activist principles at play: Ackman http://video.cnbc.com/gallery/?video=3000397760&play=1 Gio Jim Crammer on the same stage with Bill Ackman? OMG.......That's hilarious! Link to comment Share on other sites More sharing options...
dcollon Posted July 31, 2015 Share Posted July 31, 2015 Full video of Peltz and Ackman http://www.gurufocus.com/news/349864/the-full-interview-from-delivering-alpha-with-nelson-peltz-and-bill-ackman Link to comment Share on other sites More sharing options...
giofranchi Posted August 6, 2015 Author Share Posted August 6, 2015 July 2015 Performance Report GioPerformance-Report-July-2015-PSH.pdf Link to comment Share on other sites More sharing options...
giofranchi Posted August 6, 2015 Author Share Posted August 6, 2015 Activist Ackman Takes $5.5 Billion Stake in Snacks Giant Mondelez William Ackman thinks Oreo maker needs to cut costs, grow revenue, or sell to rival like Kraft Heinz http://www.wsj.com/articles/activist-takes-5-5-billion-stake-in-snacks-giant-mondelez-1438825313 Gio Link to comment Share on other sites More sharing options...
giofranchi Posted August 6, 2015 Author Share Posted August 6, 2015 This is interesting imo! Who knows?... He might already be in talk with 3G Capital! Is he trying to replicate with 3G Capital what he did with Valeant?... We will see! ;) Cheers Gio Link to comment Share on other sites More sharing options...
giofranchi Posted August 6, 2015 Author Share Posted August 6, 2015 Also: Ackman’s Investment Is Latest Jolt for Mondelez Maker of Oreos, Triscuit crackers stumbled amid a bumpy year of activism, restructuring http://www.wsj.com/articles/ackmans-investment-is-latest-jolt-for-mondelez-1438826576?mod=e2tw Gio Link to comment Share on other sites More sharing options...
giofranchi Posted August 6, 2015 Author Share Posted August 6, 2015 http://www.marketwatch.com/story/ackman-takes-55-billion-stake-in-oreo-maker-2015-08-06 Gio Link to comment Share on other sites More sharing options...
Phaceliacapital Posted August 6, 2015 Share Posted August 6, 2015 Hedge fund FMCG playbook: 1) Take stake (maybe board seat) 2) Implement zero based 3) Fail to implement zero based properly 4) Sell to 3G Link to comment Share on other sites More sharing options...
giofranchi Posted August 6, 2015 Author Share Posted August 6, 2015 Pershing Square to File 13D Disclosing 7.5% Stake in Mondelez International, Inc. GioPershing-Square-to-File-13D-Disclosing-7.5%-Stake-in-Mondelez-Internatio....pdf Link to comment Share on other sites More sharing options...
Guest Grey512 Posted August 11, 2015 Share Posted August 11, 2015 I admire Ackman greatly, but I am concerned with this latest move for Mondelez. My perception is that Irene Rosenfeld (MDLZ's CEO) is a (very) tough cookie and a skilled operator. I see limited MDLZ price upside and a limited actual opportunity for a corporate event. Link to comment Share on other sites More sharing options...
petec Posted August 12, 2015 Share Posted August 12, 2015 Ackman's letters refer to sometimes protecting the portfolio by spending a little money on derivatives that would pay off big in a crash or other rare market move. Does anyone know if these positions are disclosed/known? Link to comment Share on other sites More sharing options...
sampr01 Posted August 12, 2015 Share Posted August 12, 2015 Are you Jeff Ubben?. Jeff posted exact same on twitter I admire Ackman greatly, but I am concerned with this latest move for Mondelez. My perception is that Irene Rosenfeld (MDLZ's CEO) is a (very) tough cookie and a skilled operator. I see limited MDLZ price upside and a limited actual opportunity for a corporate event. Link to comment Share on other sites More sharing options...
merkhet Posted August 12, 2015 Share Posted August 12, 2015 Are you Jeff Ubben?. Jeff posted exact same on twitter I admire Ackman greatly, but I am concerned with this latest move for Mondelez. My perception is that Irene Rosenfeld (MDLZ's CEO) is a (very) tough cookie and a skilled operator. I see limited MDLZ price upside and a limited actual opportunity for a corporate event. Yes, he is the Jeff Ubben on twitter. No, the Jeff Ubben on twitter is not the actual Jeff Ubben from ValueAct. Link to comment Share on other sites More sharing options...
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