Bill Ackman's hedge fund reveals new stake in Warren Buffett's Berkshire Hathaway

REUTERS/Brendan McDermidActivist investor Bill Ackman, chief executive of Pershing Square Capital.
  • Activist investor Bill Ackman has purchased a stake worth about $US696 million in Warren Buffett’s Berkshire Hathaway, according to a new filing with the Securities and Exchange Commission.
  • Ackman’s Pershing Square Capital Management owned 3.51 million shares of Berkshire’s Class B stock as of June 30, according the filing.
  • The investment in Berkshire is expected to be passive,Bloomberg reported citing a person familiar with the matter.
  • Visit the Markets Insider homepage for more stories.

Warren Buffett’s Berkshire Hathaway has a new stockholder: Bill Ackman’s Pershing Square Capital.

The activist investor held 3.51 million shares of Berkshire’s Class B stock as of June 30, according to a regulatory filing released on Wednesday. The stake was worth more than $US696 million as of early trading on Thursday.

According to Bloomberg, Ackman’s investment is expected to be passive.

Ackman is an activist investor who has battled companies from Canadian Pacific Railway to Herbalife. Most recently, Ackman voiced an objection to the proposed merger between United Technologies and Raytheon. But instead of fighting the deal, he chose to sell his stake in United Technologies to pursue other investments, Bloomberg reported.

The filing showed Pershing Square also trimmed it stakes in Chipotle,Lowe’s,Starbucks from the previous quarter.

Berkshire has built up a massive cash pile in recent years, totalling about $US122 billion. Buffett and his partner Charlie Munger haven’t placed any new major bets on stocks. Instead, they have moved in the opposite direction. Berkshire liquidated about $US1 billion more worth of stocks in Q2 than it purchased during the first quarter of 2019. The famous investor-duo also hasn’t pursued any major acquisitions in recent years.

After taking major losses on Valeant Pharmaceuticals and Herbalife, Ackman was forced to step back and revamp his investment style as investors pulled funds from Pershing Square. According to the fund’s website, it was up 48.9% year-to-date as of August 13.

Berkshire Hathaway’s class B shares are down 3% year-to-date.

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