Pershing Square Capital Management#Herbalife

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In 2004, Ackman started Pershing Square Capital Management with $54 million in funding from his personal funds and a seed investment from Leucadia National.{{Cite news |last=Serres |first=Chris |date=13 January 2008 |title=William Ackman: Targeting Target |language=English |work=Star Tribune|location=Minnesota |url=http://www.startribune.com/business/13715691.html |url-status=dead |access-date=16 May 2009 |archive-url=https://web.archive.org/web/20120529164307/http://www.startribune.com/printarticle/?id=13715691 |archive-date=29 May 2012}}

In October 2014, Ackman launched a UK-based closed-end fund, Pershing Square Holdings, on the Amsterdam Stock Exchange.{{Cite web |date=13 October 2014 |title=Bill Ackman's Pershing Square fizzles on IPO |url=https://www.ft.com/content/0750e854-52b0-11e4-a236-00144feab7de |url-status=live |archive-url=https://web.archive.org/web/20201106130159/https://www.ft.com/content/0750e854-52b0-11e4-a236-00144feab7de |archive-date=6 November 2020 |access-date=2 June 2017 |publisher=FT}}

Pershing has launched activist campaigns against McDonald's, Wendy's, and Herbalife.

In 2005, Pershing bought a significant share in fast food chain Wendy's International and successfully pressured them to sell off its Tim Horton's donut chain. Wendy's spun off the Canadian restaurant donut chain through an IPO in 2006 and raised $670 million for Wendy's investors. After Ackman sold his shares at a substantial profit after a dispute over executive succession, the stock price collapsed, raising criticism that the sale of Wendy's fastest growing unit left the company in a weaker market position. Ackman blamed the poor performance on their new CEO.

In December 2007, his funds owned a 10% stake in Target Corporation, valued at $4.2 billion{{Cite news |date=24 December 2007 |title=Ackman Boosts Target State |work=Bloomberg |url=http://bloomberg.com/apps/news?pid=20601087&sid=ad2tlfp2uNZw&dlbk |url-status=dead |access-date=27 February 2013 |archive-date=6 January 2008 |archive-url=https://web.archive.org/web/20080106133206/http://www.bloomberg.com/apps/news?pid=20601087 }} through the purchase of stock and derivatives.{{Cite web |last=Andrew Bary |date=26 May 2009 |title=Ackman's Target Campaign Is Off-Target |url=http://online.barrons.com/article/SB124303588507648835.html?mod=article-outset-box |url-status=live |archive-url=https://web.archive.org/web/20131212071921/http://online.barrons.com/article/SB124303588507648835.html?mod=article-outset-box |archive-date=12 December 2013 |access-date=27 February 2013 |website=barrons.com}} By 2009, their Target holdings had been reduced to 7.8%.{{Cite news |date=28 May 2009 |title=Ackman loses in Target proxy contest |work=Reuters |url=https://www.reuters.com/article/us-target-idUSTRE54R11420090528 |url-status=live |access-date=1 July 2017 |archive-url=https://web.archive.org/web/20150924141944/http://www.reuters.com/article/2009/05/28/us-target-idUSTRE54R11420090528 |archive-date=24 September 2015}} In December 2010, his funds held a 38% stake in Borders and on December 6, 2010, Ackman indicated he would finance a buyout of Barnes & Noble for {{US$|900 million}}.{{Cite news |last=de la Merced |first=Michael |date=6 December 2010 |title=Ackman Offers to Finance a Borders Bid for Barnes & Noble |language=English |work=The New York Times |issue=DealBook |url=https://dealbook.nytimes.com/2010/12/06/ackman-offers-to-finance-a-borders-bid-for-barnes-noble/ |url-status=live |access-date=27 February 2013 |archive-url=https://web.archive.org/web/20130309170744/http://dealbook.nytimes.com/2010/12/06/ackman-offers-to-finance-a-borders-bid-for-barnes-noble/ |archive-date=9 March 2013}}

On January 9, 2009, the fund disclosed a 7.4% ownership stake in General Growth Properties (GGP) according to documents filed with the SEC,{{Cite web |title=Pershing Square (Bill Ackman) Files 13D on General Growth Properties (GGP) |url=http://www.marketfolly.com/2009/01/pershing-square-bill-ackman-files-13d.html |url-status=live |archive-url=https://web.archive.org/web/20130305233852/http://www.marketfolly.com/2009/01/pershing-square-bill-ackman-files-13d.html |archive-date=2013-03-05 |access-date=2013-03-03 |publisher=Market Folly}} becoming the second-largest shareholder behind Brookfield Asset Management. The fund was betting on the company going bankrupt in such a way as to leave its shareholders intact.{{Cite web |last=TraderMark |date=14 January 2009 |title=The Logic Behind Bill Ackman's Purchase of General Growth Properties |url=http://seekingalpha.com/article/114750-the-logic-behind-bill-ackman-s-purchase-of-general-growth-properties |url-status=live |archive-url=https://web.archive.org/web/20130306005247/http://seekingalpha.com/article/114750-the-logic-behind-bill-ackman-s-purchase-of-general-growth-properties |archive-date=6 March 2013 |access-date=3 March 2013 |website=Seeking Alpha}} In November 2010, Pershing Square helped the company emerge from Chapter 11 bankruptcy protection.{{Cite news |date=22 October 2010 |title=General Growth cleared to exit bankruptcy |work=Reuters |url=https://www.reuters.com/article/us-generalgrowth-idUSTRE69K41320101022 |url-status=live |access-date=1 July 2017 |archive-url=https://web.archive.org/web/20150924150216/http://www.reuters.com/article/2010/10/22/us-generalgrowth-idUSTRE69K41320101022 |archive-date=24 September 2015}} In August 2012 the fund held beneficial ownership of 7.7 percent of General Growth's stock.{{Cite web |title=Pershing Square Urges Shareholders To Consider Sale Of General Growth Properties |url=http://seekingalpha.com/article/825531-pershing-square-urges-shareholders-to-consider-sale-of-general-growth-properties |url-status=live |archive-url=https://web.archive.org/web/20130306004445/http://seekingalpha.com/article/825531-pershing-square-urges-shareholders-to-consider-sale-of-general-growth-properties |archive-date=2013-03-06 |access-date=2013-03-03 |publisher=Seeking Alpha}} General Growth Partners repurchased PSCM's remaining stake in February 2014.{{Cite news |last=Louis |first=Brian |date=2014-02-11 |title=Ackman Sells General Growth Shares to Exit Holding in Mall Owner |url=https://www.bloomberg.com/news/articles/2014-02-11/ackman-s-general-growth-sale-marks-end-of-investment-era |access-date=2024-05-02 |work=Bloomberg |language=en}}

In 2010, Pershing Square reported having taken large ownership stakes in JC Penney and Canadian Pacific Railway.{{Cite news |date=15 June 2012 |title=Bill Ackman's Activist Positions in J.C. Penney and Canadian Pacific Railway |work=Forbes |url=https://www.forbes.com/sites/gurufocus/2012/06/15/bill-ackmans-activist-positions-in-j-c-penney-and-canadian-pacific-railway/ |url-status=live |access-date=8 September 2017 |archive-url=https://web.archive.org/web/20201106130201/https://www.forbes.com/sites/gurufocus/2012/06/15/bill-ackmans-activist-positions-in-j-c-penney-and-canadian-pacific-railway/ |archive-date=6 November 2020}}

In July 2012, Ackman acknowledged to CNBC he had acquired shares in Procter & Gamble worth approximately $1.8 billion, a 1% stake in the company, with the idea of taking an activist role within the corporation. Pershing Square later reduced its stake in Procter & Gamble, which was valued at around $60 million by the end of 2013.{{Cite news |last=Benoit |first=David |date=14 February 2014 |title=Pershing Square Slashes Procter & Gamble Stake |language=English |publisher=Wall Street Journal |issue=MoneyBeat |url=https://blogs.wsj.com/moneybeat/2014/02/14/pershing-square-slashes-procter-gamble-stake/ |url-status=live |access-date=24 March 2014 |archive-url=https://web.archive.org/web/20201106130210/https://blogs.wsj.com/moneybeat/2014/02/14/pershing-square-slashes-procter-gamble-stake/ |archive-date=6 November 2020}}

In December 2012, Pershing Square Capital Management launched a new closed-end fund called Pershing Square Holdings, which raised $3 billion in an October 2014 IPO on Amsterdam's Euronext stock market.{{cite news|last1=Bray|first1=Chad|title=Ackman Fund's I.P.O. Has Rough Debut in Amsterdam|url=https://dealbook.nytimes.com/2014/10/13/ackman-fund-stumbles-in-amsterdam-trading-debut/|access-date=26 January 2018|agency=The New York Times Company|issue=DealBook|work=The New York Times|date=13 October 2014|location=United States|language=en|archive-date=January 27, 2018|archive-url=https://web.archive.org/web/20180127004609/https://dealbook.nytimes.com/2014/10/13/ackman-fund-stumbles-in-amsterdam-trading-debut/|url-status=live}} As a closed-end fund valued at $6.7 billion, PSH was designed as a permanent capital vehicle from which investors would not be able to directly withdraw funds.{{cite news|last1=Sender|first1=Henny|last2=Foley|first2=Stephen|title=Permanent capital: Perpetual cash machines|url=https://www.ft.com/content/0b6272c2-91ae-11e4-afd2-00144feabdc0|access-date=9 November 2019|agency=Nikkei|publisher=Financial Times|date=4 January 2015|language=en|url-access=subscription|archive-date=January 27, 2018|archive-url=https://web.archive.org/web/20180127083756/https://www.ft.com/content/0b6272c2-91ae-11e4-afd2-00144feabdc0|url-status=live}} PSH reported 17.1% in returns since inception (December 2012–November 2017) under Ackman's management, 80% below the S&P 500.{{cite web|url=https://assets.pershingsquareholdings.com/media/2014/09/16100205/Pershing-Square-3Q17-Investor-Letter-November-2017-PSH-2.pdf|title=Pershing Square 3Q17 Investor Letter|date=November 15, 2017|access-date=May 13, 2016|archive-date=January 27, 2018|archive-url=https://web.archive.org/web/20180127004533/https://assets.pershingsquareholdings.com/media/2014/09/16100205/Pershing-Square-3Q17-Investor-Letter-November-2017-PSH-2.pdf|url-status=live}}

In a statement dated August 27, 2013, Pershing Square reported that it had hired Citigroup to liquidate the 39.1 million shares the firm then owned of J.C. Penney at a price of $12.90 per share, resulting in a loss of approximately $500 million.{{cite news|last1=Townsend|first1=Matt|title=Ackman Takes $500 Million Loss on Penney as Saga Ends|url=https://www.bloomberg.com/news/articles/2013-08-27/ackman-s-pershing-sells-stake-in-j-c-penney-for-504-million|access-date=March 21, 2017|agency=Bloomberg L.P.|publisher=Bloomberg News|date=August 27, 2013|url-access=limited|archive-date=April 6, 2017|archive-url=https://web.archive.org/web/20170406182749/https://www.bloomberg.com/news/articles/2013-08-27/ackman-s-pershing-sells-stake-in-j-c-penney-for-504-million|url-status=live}}

In 2013, Pershing Square acquired a $2.2 billion stake in Air Products & Chemicals,{{Cite news |date=July 31, 2013 |title=Ackman's Pershing Square takes $2.2 billion stake in Air Products |url=https://www.reuters.com/article/idUSBRE96U0GK/ |publisher=Reuters}} and nominated Matt Paull to serve on the company's board.{{Cite news |date=September 26, 2013 |title=CEO to retire as Air Products strikes deal with Ackman |url=https://www.reuters.com/article/idUSBRE98P0SJ/ |publisher=Reuters}} Pershing Square sold its stake in 2017. According to a letter cited by Reuters, during Pershing Square’s four-and-half-year investment, APD delivered a 104.7% total shareholder return.{{Cite news |date=November 15, 2017 |title=Ackman sells Air Products, Nomad Foods positions, makes strong profit |url=https://www.reuters.com/article/idUSKBN1DG04Q/ |publisher=Reuters}}

In the first quarter of 2016, the hedge fund experienced its "biggest-ever quarterly loss" of 25%, due in part to its 9% stake in Valeant Pharmaceuticals International. Ackman, who joined Valeant's board in March 2016, commented on the company's 88% loss since August 2015 stating, “This is going to be a badly scraped knee that may even require stitches but it is not life threatening... We should be able to recover the lion's share of our investment—if not all of it—over time".{{Cite news |date=6 April 2016 |title=Bill Ackman Is About to Get Seriously Grilled by Unhappy Investors |publisher=Fortune |url=http://fortune.com/2016/04/06/ackman-questioning-investors-loss/ |url-status=live |access-date=16 April 2016 |archive-url=https://web.archive.org/web/20201106130235/https://fortune.com/2016/04/06/ackman-questioning-investors-loss/ |archive-date=6 November 2020}}{{Cite news |last=Whitehouse |first=Kaja |date=6 March 2016 |title=Bill Ackman says he can recoup Valeant losses |work=USA Today |url=https://www.usatoday.com/story/money/2016/04/06/bill-ackman-says-he-can-recoup-valeant-losses/82696792/ |url-status=live |access-date=16 April 2016 |archive-url=https://web.archive.org/web/20160410151421/http://www.usatoday.com/story/money/2016/04/06/bill-ackman-says-he-can-recoup-valeant-losses/82696792/ |archive-date=10 April 2016}}{{Cite news |last=Gara |first=Antoine |date=21 March 2016 |title=As Bill Ackman Enters Valeant's Boardroom, The Stakes Rise Above The Billions He May Lose |work=Forbes |url=https://www.forbes.com/sites/antoinegara/2016/03/21/as-bill-ackman-enters-valeants-boardroom-the-stakes-rise-above-the-billions-he-may-lose/#5a57c9145797 |url-status=live |access-date=16 April 2016 |archive-url=https://web.archive.org/web/20201106130211/https://www.forbes.com/sites/antoinegara/2016/03/21/as-bill-ackman-enters-valeants-boardroom-the-stakes-rise-above-the-billions-he-may-lose/#5a57c9145797 |archive-date=6 November 2020}} After the controversial drug prices and operations of Valeant became public, Ackman and Valeant's board fired former CEO Mike Pearson, and Pershing Square sold all of its stake in Valeant with a total loss of $4 billion.{{Cite web |last=Franck |first=Thomas |date=2018-04-05 |title=Bill Ackman's hedge fund empire crumbles in less than 3 years from public wrong-way bets on Herbalife, Chipotle |url=https://www.cnbc.com/2018/04/05/how-bill-ackmans-hedge-fund-empire-crumbled-in-less-than-three-years.html |url-status=live |archive-url=https://web.archive.org/web/20201106130229/https://www.cnbc.com/2018/04/05/how-bill-ackmans-hedge-fund-empire-crumbled-in-less-than-three-years.html |archive-date=2020-11-06 |access-date=2019-09-26 |website=CNBC |language=en}}

In September 2016, Pershing Square continued its investment in fast food by buying a 9.9% stake in Chipotle Mexican Grill.{{Cite news |date=6 September 2016 |title=Bill Ackman's Pershing Square takes 9.9% stake in Chipotle |publisher=CNBC |url=https://www.cnbc.com/2016/09/06/bill-ackmans-pershing-square-takes-99-pct-stake-in-chipotle-filing-says.html |url-status=live |access-date=9 September 2016 |archive-url=https://web.archive.org/web/20201106130203/https://www.cnbc.com/2016/09/06/bill-ackmans-pershing-square-takes-99-pct-stake-in-chipotle-filing-says.html |archive-date=6 November 2020}} As of March 2018, Pershing Square held a 10.3% stake in Chipotle.{{Cite news |last=Franck |first=Thomas |date=2018-04-05 |title=How Bill Ackman's hedge fund empire crumbled in less than three years |work=CNBC |url=https://www.cnbc.com/2018/04/05/how-bill-ackmans-hedge-fund-empire-crumbled-in-less-than-three-years.html |url-status=live |access-date=2018-04-05 |archive-url=https://web.archive.org/web/20201106130229/https://www.cnbc.com/2018/04/05/how-bill-ackmans-hedge-fund-empire-crumbled-in-less-than-three-years.html |archive-date=2020-11-06}}

In 2018, Ackman dumped $500 million into the publicly traded arm of Pershing Square Capital Management stating it was significantly undervalued at roughly $15 a share. As of September 2019, the fund returned 54.5% with a share price of $19.10, the highest since January 2016.{{Cite news |title=Ackman's $500 Million Bet on Ackman Pays Off After Bad Run |newspaper=Bloomberg |date=6 September 2019 |url=https://www.bloomberg.com/news/articles/2019-09-06/ackman-s-500-million-bet-on-ackman-pays-off-after-losing-streak |access-date=2019-09-26}}{{Cite web |last=Franck |first=Thomas |date=July 2, 2019 |title=Pershing Square up 45% in the first half of 2019 as Bill Ackman win streak continues |url=https://www.cnbc.com/2019/07/02/bill-ackmans-pershing-square-up-45percent-in-the-first-half-of-2019.html |url-status=live |archive-url=https://web.archive.org/web/20201106130239/https://www.cnbc.com/2019/07/02/bill-ackmans-pershing-square-up-45percent-in-the-first-half-of-2019.html |archive-date=November 6, 2020 |access-date=September 26, 2019 |website=CNBC}}

In March 2020, Pershing Square made $2.6 billion (£2.2 billion) betting that there would be a market crash.{{Cite news|url=https://www.theguardian.com/business/2020/nov/11/us-investor-bill-ackman-places-new-bet-against-corporate-credit-covid|title=US investor Bill Ackman places new bet against corporate credit|first=Jasper|last=Jolly|date=November 11, 2020|newspaper=The Guardian}}

In November 2020, Pershing Square took a position against corporate credit.{{Cite news|url=https://www.theguardian.com/business/2020/mar/25/bill-ackman-claims-firm-made-26bn-betting-on-coronavirus-outbreak|title=Bill Ackman claims firm made $2.6bn betting on coronavirus outbreak|first=Jasper|last=Jolly|date=March 25, 2020|newspaper=The Guardian}}{{Cite news|url=https://www.bloomberg.com/opinion/articles/2020-11-11/pershing-square-s-bill-ackman-is-right-to-hedge-on-corporate-credit|title=Bill Ackman Is Right to Hedge on Corporate Credit|newspaper=Bloomberg |date=November 11, 2020|via=www.bloomberg.com}}

In April 2022, Pershing Square lost in excess of $430 million on Netflix after a three month–long bet.{{Cite web|url=https://www.bnnbloomberg.ca/ackman-loses-more-than-us-430m-on-3-month-netflix-bet-1.1754677|title=Ackman loses more than US$430M on 3-month Netflix bet - BNN Bloomberg|first1=Scott |last1=Deveau |first2=Christopher |last2=Palmeri |date=April 20, 2022|website=BNN Bloomberg}}

In August 2023, Ackman said that Pershing Square took a short position on 30-year Treasury bills through options instead of shorting the bonds outright, betting that long-term inflation will settle about 100 points higher than Federal Reserve's 2% target.{{Cite news |last=Herbst-Bayliss |first=Svea |date=August 2, 2023 |title=Billionaire investor Ackman says he is shorting 30-year Treasuries |url=https://www.reuters.com/markets/us/billionaire-investor-ackman-says-he-is-shorting-30-year-treasuries-2023-08-03/ |work=Reuters}} He closed the position less than three months later citing geopolitical risks surrounding the Gaza war and slowing economy, netting $200 million in the process.{{Cite news |last=Mourselas |first=Costas |date=October 25, 2023 |title=Bill Ackman makes $200mn from bet against US Treasuries |url=https://www.ft.com/content/0a7973db-0fd0-4afb-a5b8-322aafbb5d1f |work=Financial Times}}{{Cite news |last1=Diallo |first1=Aysha |last2=Xie |first2=Ye |date=October 23, 2023 |title=Bill Ackman Says He Covered His Short Bet on US Treasuries |url=https://www.bloomberg.com/news/articles/2023-10-23/bill-ackman-says-he-covered-bond-short-amid-mounting-global-risk |publisher=Bloomberg News}}

Pershing Square Tontine Holdings was a blank check company formed by Bill Ackman that went public on July 22, 2020, at a value of $4 billion and traded under the ticker symbol PSTH.U before the split of its warrants and shares.{{Cite news |title=Pershing Square Tontine Holdings, Ltd. Announces $4,000,000,000 Initial Public Offering at $20.00 Per Share |url=https://pstontine.com/wp-content/uploads/2020/07/Pershing-Square-Tontine-Holdings-Ltd.-Announces-4000000000-Initial-Public-Offering-at-20.00-Per-Share.pdf |work=Pershing Square Tontine Holdings Investor Relations}} In 2020, PSTH was the largest SPAC to IPO to date.{{Cite web |title=Bill Ackman and Pershing Square Launch Largest SPAC To Date: A Harbinger of Things to Come? |url=https://www.debevoise.com/insights/publications/2020/07/bill-ackman-and-pershing-square-launch-largest |access-date=2021-02-27 |website=Debevoise |language=en-US}}

PSTH had a unique "Tontine" structure where shareholders were incentivized to hold shares through merger once a target was found for acquisition. The IPO included 200 million units, which included a total of 200 million shares and 22,222,222 warrants. Another 44,444,444 warrants, or two ninths per share, were be distributed to shareholders who chose to participate in the proposed merger. The strike price of PSTH warrants were $23.{{Cite web |last=Jasinski |first=Nicholas |title=Bill Ackman's SPAC Splits Today. Here's What That Means. |url=https://www.marketwatch.com/articles/pershing-square-tontine-holdings-units-split-on-friday-heres-what-that-means-51599756914 |access-date=2021-02-27 |website=MarketWatch |language=en-US}}

In July 2022, Ackman addressed PSTH shareholders saying that he would return the funds of the SPAC as he was "unable to consummate a transaction that both meets our investment criteria and is executable."{{cite news |last=Hirsch |first=Lauren |date=11 July 2022 |title=Largest-ever SPAC will return $4 billion to investors after failing to complete a deal. |url=https://www.nytimes.com/2022/07/11/business/bill-ackman-spac-pershing.html |url-access=limited |url-status=live |archive-url=https://web.archive.org/web/20220712000004/https://www.nytimes.com/2022/07/11/business/bill-ackman-spac-pershing.html |archive-date=12 July 2022 |work=The New York Times}}

PSCM acquired a 7.1% stake of Universal Music Group (UMG) from Vivendi in August 2021 for $2.8 billion.{{cite news |date=August 10, 2021 |title=Vivendi sells a 7.1% stake of UMG to Pershing Square for $2.8 billion |url=https://www.reuters.com/business/vivendi-sells-71-stake-umg-pershing-square-28-billion-2021-08-10/ |publisher=Reuters}} Later that month, PSCM agreed to purchase an additional 2.9% of UMG from Vivendi for $1.149 billion.{{cite news |date=August 31, 2021 |title=Pershing Square to buy extra 2.9% of Universal Music for $1.15 bln |url=https://www.reuters.com/business/frances-vivendi-sells-29-universal-pershing-square-115-bln-2021-08-31/ |publisher=Reuters}} Following the transaction, PSCM held 10% of UMG's share capital.{{cite news |last1=Bary |first1=Andrew |date=September 21, 2021 |title=Bill Ackman's Fund Is a Big Winner From Universal Music's Debut |url=https://www.barrons.com/articles/bill-ackmans-fund-is-a-big-winner-from-universal-musics-debut-51632239830 |work=Barron's |quote=Pershing Square Holdings could be sitting on a pretax profit of about $900 million. In Tuesday trading in Europe, Universal Music shares were at about 25.50 Euros, 37% above Ackman’s cost of 18.58 Euros. The big gain in Universal shares vindicates Ackman’s bullish take on the company and his willingness to buy roughly 10% of the world’s leading music company.}} Ackman was nominated to a non-independent director of UMG in March 2022.{{cite web |date=March 31, 2022 |title=Universal Music Group Board Nominates William A. Ackman, Nicole Avant, Cyrille Bollore and Sherry Lansing as Directors and Publishes 2021 Annual Report and Agenda for 2022 Annual General Meeting of Shareholders |url=https://www.universalmusic.com/universal-music-group-board-nominates-william-a-ackman-nicole-avant-cyrille-bollore-and-sherry-lansing-as-directors-and-publishes-2021-annual-report-and-agenda-for-2022-annual-general-meeting-of-sh/ |publisher=Universal Music Group}}

In January 2022, Ackman disclosed that Pershing Square acquired a $1.1 billion stake in Netflix. Netflix stock had just experienced a precipitous 30% selloff after announcement of a disappointing subscriber growth outlook for Q1 2022. In a letter to its investors, Ackman praised Netflix's "best-in-class management team" and said he long admired Netflix CEO Reed Hastings and the "remarkable company he and his team have built."

In April, Netflix stock fell by 35%, and Ackman responded by selling his entire stake in the company. The fund lost over $430 million over the three-month investment.{{Cite news |date=2022-04-20 |title=Ackman Loses More Than $430 Million on 3-Month Netflix Bet |language=en |work=Bloomberg.com |url=https://www.bloomberg.com/news/articles/2022-04-20/ackman-loses-more-than-430-million-on-three-month-netflix-bet |access-date=2022-04-21}}

{{See also|Bill_Ackman#Herbalife_short|l1=Bill Ackman Herbalife short}}

In December 2012, Ackman announced the firm had made a $1 billion short bet against Herbalife, a maker of weight-loss and vitamin supplements, calling the company a "pyramid scheme".{{Cite news |last=Stevenson |first=Alexandra |date=11 March 2014 |title=Herbalife Shares Fall as Ackman Makes New Accusations |language=English |work=The New York Times |url=https://dealbook.nytimes.com/2014/03/11/herbalife-shares-fall-as-ackman-makes-new-accusations/ |url-status=live |access-date=24 March 2014 |archive-url=https://web.archive.org/web/20140316131204/http://dealbook.nytimes.com/2014/03/11/herbalife-shares-fall-as-ackman-makes-new-accusations/ |archive-date=16 March 2014}} After activist billionaire investor Carl Icahn bought a stake in the company in January 2013, the share price rose nearly 13% and the investment was seen by analysts as the worst investment ever made by the firm.{{Cite news |last=Stanford |first=Duane |date=24 March 2014 |title=Herbalife Strengthens Ties With Icahn as Ackman War Rages |url=https://www.bloomberg.com/news/2014-03-24/herbalife-to-nominate-three-more-icahn-candidates-to-board.html |access-date=24 March 2014 |work=Bloomberg}} After a persistent political and grassroots campaign funded by Ackman and the firm,{{Cite news |last=Schmidt |first=Michael |date=9 March 2014 |title=After Big Bet, Hedge Fund Pulls the Levers of Power |language=English |work=The New York Times |url=https://www.nytimes.com/2014/03/10/business/staking-1-billion-that-herbalife-will-fail-then-ackman-lobbying-to-bring-it-down.html |url-status=live |access-date=24 March 2014 |archive-url=https://web.archive.org/web/20170114034542/https://www.nytimes.com/2014/03/10/business/staking-1-billion-that-herbalife-will-fail-then-ackman-lobbying-to-bring-it-down.html |archive-date=14 January 2017}}{{Cite news |last=DealBook |date=10 March 2014 |title=Ackman vs. Herbalife, a History |language=English |work=The New York Times |issue=DealBook |url=https://dealbook.nytimes.com/2014/03/10/ackman-versus-herbalife-a-history/ |url-status=live |access-date=24 March 2014 |archive-url=https://web.archive.org/web/20201106130219/https://dealbook.nytimes.com/2014/03/10/ackman-versus-herbalife-a-history/ |archive-date=6 November 2020}} the Federal Trade Commission initiated a civil investigation into Herbalife, causing its stock to drop enough that by March 2014, Pershing Square was nearly even on their bet. In April 2014, Reuters reported that, according to its sources, the FBI conducted a probe into Herbalife and reviewed documents obtained from the company's former distributors.{{Cite news |date=April 2014 |title=FBI conducting a probe into Herbalife: sources |url=https://finance.yahoo.com/news/fbi-conducting-probe-herbalife-source-211828041.html |url-status=live |access-date=11 April 2014 |archive-url=https://web.archive.org/web/20140413125749/http://finance.yahoo.com/news/fbi-conducting-probe-herbalife-source-211828041.html |archive-date=13 April 2014}}

On March 12, 2015, it reported that Ackman was under investigation by federal prosecutors and the FBI; Ackman was quoted that he would not back down from his claims against Herbalife.{{Cite news |last=Lopez |first=Linette |date=13 March 2015 |title=REPORT: The FBI is investigating Bill Ackman over Herbalife |language=English |publisher=Business Insider |url=https://www.businessinsider.com/the-fbi-is-investigating-bill-ackman-over-herbalife-2015-3 |url-status=live |access-date=16 June 2015 |archive-url=https://web.archive.org/web/20150617081609/http://www.businessinsider.com.au/the-fbi-is-investigating-bill-ackman-over-herbalife-2015-3 |archive-date=17 June 2015}}{{Cite news |last=Holm |first=Erik |date=13 March 2015 |title=Bill Ackman Not Backing Down On Herbalife |language=English |work=Wall Street Journal |issue=MoneyBeat|url=https://blogs.wsj.com/moneybeat/2015/03/13/bill-ackman-not-backing-down-on-herbalife/ |url-status=live |access-date=16 June 2015 |archive-url=https://web.archive.org/web/20150617061517/http://blogs.wsj.com/moneybeat/2015/03/13/bill-ackman-not-backing-down-on-herbalife/ |archive-date=17 June 2015}} In July 2015, U.S. District Judge Dale Fischer dismissed a suit filed by Herbalife investors who claimed the company defrauded shareholders by concealing the company's ability to track retail sales.{{Cite web |last=Stempel |first=Jonathan |date=July 29, 2015 |title=Judge dismisses 'pyramid scheme' lawsuit versus Herbalife, CEO |url=https://www.reuters.com/article/us-herbalife-lawsuit-idUSKCN0Q321B20150729/ |access-date=May 2, 2024 |website=Reuters}}{{Cite news |last1=Stempel |first1=Jonathan |last2=Ablan |first2=Jennifer |date=March 20, 2015 |title=Herbalife not exonerated by U.S. judge: Pershing Square |url=https://www.reuters.com/article/idUSKBN0MG25U/ |publisher=Reuters}} In July 2016, Herbalife settled with the Federal Trade Commission, agreeing to pay $200 million and restructure its business practices in exchange for not being labelled a pyramid scheme.{{Cite web |last1=Bartz |first1=Diane |last2=Flaherty |first2=Michael |date=July 15, 2016 |title=Herbalife settles pyramid scheme case with regulator, in blow to Pershing's Ackman |url=https://www.reuters.com/article/idUSKCN0ZV1F6/ |access-date=May 2, 2024 |website=Reuters}}{{Cite news |last=Thielman |first=Sam |date=2016-07-15 |title=Herbalife dodges 'pyramid scheme' label and agrees to pay $200m fine |url=https://www.theguardian.com/business/2016/jul/15/herbalife-ftc-fine-200-million-pyramid-scheme-label |access-date=2024-05-02 |work=The Guardian |language=en-GB |issn=0261-3077}}

In June 2014, Pershing Square was the largest institutional holder of the shares of Platform Specialty Products Corporation ({{NYSE|PAH}}), owning a 24.28% stake.{{Cite news |date=30 June 2014 |title=PAH Major Holders |work=Yahoo Finance |url=https://finance.yahoo.com/q/mh?s=PAH+Major+Holders |url-status=live |access-date=17 January 2017 |archive-url=https://web.archive.org/web/20160427025740/http://finance.yahoo.com/q/mh?s=PAH+Major+Holders |archive-date=27 April 2016}} Pershing first disclosed the position in January 2014,{{Cite news |date=19 May 2014 |title=Why Pershing Initiates Position in Platform Specialty Products |work=Yahoo Finance |url=https://finance.yahoo.com/news/why-pershing-initiates-position-platform-213805124.html |url-status=live |access-date=17 January 2017 |archive-url=https://web.archive.org/web/20160409094930/http://finance.yahoo.com/news/why-pershing-initiates-position-platform-213805124.html |archive-date=9 April 2016}} shortly after Platform debuted on the New York Stock Exchange.{{Cite news |date=27 January 2014 |title=Pershing Square Discloses Platform Specialty Products Stake |work=Market Folly |url=http://www.marketfolly.com/2014/01/pershing-square-discloses-platform.html |url-status=live |access-date=16 August 2014 |archive-url=https://web.archive.org/web/20140819084544/http://www.marketfolly.com/2014/01/pershing-square-discloses-platform.html |archive-date=19 August 2014}}{{Cite news |date=27 January 2014 |title=Bill Ackman Announces 30.9% Stake in Platform Specialty Products |work=NASDAQ.com |url=http://www.nasdaq.com/article/bill-ackman-announces-309-stake-in-platform-specialty-products-cm321205 |url-status=live |access-date=16 August 2014 |archive-url=https://web.archive.org/web/20201106130327/https://www.nasdaq.com/articles/bill-ackman-announces-309-stake-platform-specialty-products-2014-01-27 |archive-date=6 November 2020}}{{Cite news |date=25 January 2014 |title=Platform Lists on NYSE After MacDermid Deal, Pershing Stake |work=TheStreet |url=http://www.thestreet.com/story/12265903/1/ackman-backed-venture-lists-on-nyse-after-macdermid-deal.html |url-status=live |access-date=16 August 2014 |archive-url=https://web.archive.org/web/20140814093136/http://www.thestreet.com/story/12265903/1/ackman-backed-venture-lists-on-nyse-after-macdermid-deal.html |archive-date=14 August 2014}} Subsequently, in April 2014, Platform announced a deal to acquire the agrochemicals business of Chemtura for approximately $1 billion.{{Cite news |date=17 April 2014 |title=Ackman-Backed Platform to Buy Chemtura Unit for $1 Billion |work=Bloomberg Businessweek |url=http://www.businessweek.com/news/2014-04-17/ackman-backed-platform-to-buy-chemtura-unit-for-1-billion-1 |url-status=dead |access-date=2014-08-16 |archive-url=https://web.archive.org/web/20140423073740/http://www.businessweek.com/news/2014-04-17/ackman-backed-platform-to-buy-chemtura-unit-for-1-billion-1 |archive-date=2014-04-23}} Agriphar, another agricultural specialty chemicals company, agreed in August 2014 to become the third company to join the Platform umbrella.{{Cite news |date=13 August 2014 |title=Ackman Going Public, Should Mega Cap Stocks Worry? |work=ValueWalk |url=http://www.valuewalk.com/2014/08/ackman-letter-ipo/4/|archive-url=https://archive.today/20140816040110/http://www.valuewalk.com/2014/08/ackman-letter-ipo/4/|url-status=dead|archive-date=16 August 2014}}

In April 2014, Ackman singled out Platform Specialty Products in "The Outsider" presentation,{{Cite news |date=22 April 2014 |title=The Outsider |work=SEC |url=https://www.sec.gov/Archives/edgar/data/885590/000119312514152949/d714482d425.htm |url-status=live |access-date=8 September 2017 |archive-url=https://web.archive.org/web/20201106130327/https://www.sec.gov/Archives/edgar/data/885590/000119312514152949/d714482d425.htm |archive-date=6 November 2020}} which discusses optimal methods of capital allocation.{{Cite news |date=8 May 2014 |title=How 'The Outsiders' Became One Of The Most Important Business Books In America |work=Forbes |url=https://www.forbes.com/sites/nathanvardi/2014/05/08/how-the-outsiders-became-one-of-the-most-important-business-books-in-america/ |url-status=live |access-date=8 September 2017 |archive-url=https://web.archive.org/web/20201106130237/https://www.forbes.com/sites/nathanvardi/2014/05/08/how-the-outsiders-became-one-of-the-most-important-business-books-in-america/ |archive-date=6 November 2020}}{{Cite news |date=23 April 2014 |title=Pershing Square's Presentation on Allergan/Valeant: The Outsider |work=Market Folly |url=http://www.marketfolly.com/2014/04/pershing-squares-presentation-on.html |url-status=live |access-date=16 August 2014 |archive-url=https://web.archive.org/web/20140819130101/http://www.marketfolly.com/2014/04/pershing-squares-presentation-on.html |archive-date=19 August 2014}}{{Cite news |date=8 November 2014 |title=Ruling Puts Crimp in Takeover Alliances |work=Capital Activist |url=http://www.capitalactivist.com/news/2014/11/9/ruling-puts-crimp-in-takeover-alliances |url-status=dead |access-date=11 November 2014 |archive-url=https://web.archive.org/web/20160329074829/http://www.capitalactivist.com/news/2014/11/9/ruling-puts-crimp-in-takeover-alliances |archive-date=29 March 2016}}

Pershing Square sold its stake in Element Solutions (formerly Platform Specialty Products) in 2019.{{Cite web |date=February 3, 2019 |title=Schedule 13D: Element Solutions Inc |url=https://www.sec.gov/Archives/edgar/data/1336528/000119312519028308/d702428dsc13da.htm |publisher=U.S. Securities and Exchange Commission}}{{Cite web |last=Vincent |first=John |date=May 20, 2019 |title=Tracking Bill Ackman's Pershing Square Portfolio - Q1 2019 Update |url=https://seekingalpha.com/article/4265203-tracking-bill-ackmans-pershing-square-portfolio-q1-2019-update |work=Seeking Alpha}}

Pershing Square's investment ventures are featured in two financial documentaries.

• Betting on Zero features Bill Ackman's economic activism in the $1 billion shorting of Herbalife Nutrition by Pershing in a positive light, highlighting the costly lengths to which the fund went in trying to prove the allegation that the multi-level marketing company was in fact a pyramid scheme.{{Cite web |title=Betting On Zero |url=http://bettingonzeromovie.com/ |url-status=live |archive-url=https://web.archive.org/web/20201106130306/http://bettingonzeromovie.com/ |archive-date=2020-11-06 |access-date=2019-09-26 |website=Betting On Zero |language=en-US}}
• The "Drug Short" episode of Dirty Money shines a more doubtful light on Ackman's decision to double down on the fund's Valeant investments until the forced departure of former CEO Mike Pearson.{{Cite web |last=Carroll |first=Leah |title=The Female Short Seller Of Netflix's |url=https://www.refinery29.com/en-us/2018/08/205561/drug-short-film-netflix-dirty-money-erin-lee-carr |url-status=live |archive-url=https://web.archive.org/web/20190926083754/https://www.refinery29.com/en-us/2018/08/205561/drug-short-film-netflix-dirty-money-erin-lee-carr |archive-date=2019-09-26 |access-date=2019-09-26 |website=www.refinery29.com |language=en}}

• {{Cite journal |last=Cheffins |first=Brian R. |year=2014 |title=Hedge Fund Activism Canadian Style |journal=University of British Columbia Law Review |volume=47 |issue=1 |pages=1-59) (Discussing Pershing Square's activities in Canada, and a unique cultural reluctance to support active value creation by ethical intervening shareholders) |ssrn=2204294}}
• {{Cite journal |last=Rojas |first=Claudio R. |year=2014 |title=An Indeterminate Theory of Canadian Corporate Law |journal=University of British Columbia Law Review |volume=47 |issue=1 |pages=59-128 ("The author's perspective on Berkshire Hathaway's investment philosophy was informed by discussions with Warren Buffett in Omaha, Nebraska": pp. 59, 122-124) |ssrn=2391775}}

{{Reflist}}

• [https://www.pershingsquareholdings.com/ Pershing Square Capital Management]
• [http://www8.gsb.columbia.edu/valueinvesting/events/pershing Pershing Square Challenge]
• [https://news.yahoo.com/ackmans-pershing-square-reports-big-stakes-freddie-fannie-182931618--sector.html Ackman's Pershing Square takes big stakes in Freddie, Fannie]
• [https://www.wsj.com/articles/SB10001424052702303722604579113661616491516 Ackman's Pershing Square Takes $1.2 Billion Hit]

Category:Hedge fund firms in New York City

Category:Investment companies of the United States

Category:Financial services companies established in 2004

Category:Institutional investors