Bill Ackman is something of a celebrity in the investing community. He heads up Pershing Square Capital Management — the hedge fund he founded — which has more than $10 billion in assets under management. The well-known activist, who describes himself as a fundamental value investor, made a name for himself by taking sizable stakes in companies and pushing leaders to make changes that increase shareholder value.
One of the more noteworthy aspects of Ackman’s investment strategy is that Pershing Square generally owns large stakes in just eight to 12 companies and generally holds them for years. The hedge fund focuses on high-quality, large-cap, North American companies with limited downside and predictable, recurring cash flows. That strategy has been wildly successful for Ackman, as Pershing Square has generated a 31% annualized return over the past five years, roughly double the…
