In 2018, William Ackman’s Pershing Square Capital Management has been one of the few activist investor hedge funds which has managed to deliver high returns.
In a significant development, for the second time in two years billionaire investor William Ackman has purchased a stake in hotel operator Hilton Worldwide Holdings.
According to a filing data, Ackman’s Pershing Square Capital Management hedge fund owns 10.9 million shares, equivalent to 3.7%, of the company.
Pershing Square stated said the 10.9 million Hilton shares it purchased represent around 13.9% of the net asset value (NAV) of Pershing Square Holdings – its publicly traded hedge fund.
Hilton has a market capitalization of $19 billion.
Ackman, one of the industry’s most closely watched activist investors, originally started buying Hilton stock in 2016 and exited the position in 2017. Ackman never disclosed the size of that position but as per a source familiar with the matter at hand, the current position is smaller than the previous one.
Although Ackman tends to invest in companies in which he can bring about change, his bet last year on Hilton though was a passive investment for Pershing Square.
Ackman did not disclose any details regarding his plans for Hilton, only saying investors would find out more next month when he holds an investor call.
Earlier this month, Pershing Square announced a $900 million position in Starbucks; earlier this year it had announced that it has taken positions in Lowe’s Companies Inc, Nike and United Technologies Corp.
Significantly, Ackman is one of the few activist investors who has managed to deliver high returns this year. Since January 2018, his publicly traded hedge fund has gained nearly 6% through Tuesday.