Pershing Square, Bill Ackman’s hedge fund, posted 12% gains in the third quarter, in part because of its investment in part because of his investment in discount retailer Target (TGT).
Of course, he’s taken a bath on that, so this is a modest comeback.
Ackman also took up a notable stake in Nestle in the third quarter.
The New York Times reports: “Nestle has a strong opportunity to increase operating margins through cost savings initiatives that should deliver roughly $1 billion of savings annually for the next several years.” He also seems to be pushing Nestle to sell its majority stake in Alcon, the global eye care company. Nestle previously negotiated the right to sell its stake to Novartis in January – a move Mr. Ackman believes will bring in $28 billion of cash.
General Growth Properties (GGP) was also a big contributor for the fund.