Bill Ackman, the founder and chief executive of Pershing Square Capital Management, has made a name for himself as one of Wall Street’s most prominent activist investors. Known for his bold, high-stakes bets, Ackman has built a reputation for aggressively pushing for changes in companies where he sees untapped value or poor management. His activist campaigns have often led to sweeping transformations, sometimes bringing significant financial gains and, at other times, resulting in costly missteps.
Here’s a look at some of his most prolific plays—both triumphs and misfires—that have shaped his legacy in the world of finance:
Triumphs:
- Canadian Pacific Railway (2012-2016)
One of Ackman’s biggest successes was his investment in Canadian Pacific Railway (CP). Pershing Square acquired a significant stake in the company and launched an activist campaign to overhaul its leadership. Ackman successfully replaced then-CEO Fred Green with Hunter Harrison, a renowned railroad executive. The move proved highly profitable as the company’s stock soared, delivering massive returns for investors. - Chipotle Mexican Grill (2016-Present)
After Chipotle suffered a series of food safety crises, Ackman saw an opportunity to invest and push for a turnaround. He accumulated a 10% stake in the company and worked with management to revamp operations, strengthen food safety measures, and refresh its leadership. The stock rebounded strongly, rewarding Pershing Square with significant gains. - Howard Hughes Corporation (2010-Present)
Ackman played a crucial role in the transformation of Howard Hughes Corporation, a real estate development company. His long-term investment strategy paid off as the company successfully redeveloped prime properties and generated strong returns for shareholders.
Misfires:
- Herbalife (2012-2018)
Perhaps the most infamous misstep in Ackman’s career was his bet against Herbalife. He publicly declared the company a pyramid scheme and took a $1 billion short position, anticipating its collapse. However, his rival Carl Icahn took the opposite side of the trade, and the stock surged. Ackman eventually exited the position at a significant loss, marking one of his biggest defeats. - Valeant Pharmaceuticals (2015-2017)
Ackman’s investment in Valeant Pharmaceuticals turned into a disaster as the company faced accounting scandals and regulatory scrutiny. The stock plummeted, leading to a staggering $4 billion loss for Pershing Square.
Despite these ups and downs, Bill Ackman remains one of Wall Street’s most influential and controversial figures, constantly reshaping corporate America with his activist strategies.
