Bill Ackman’s 1Q18 Letter: UTX, FNMA/FMCC, CMG, ADP, MDLZ

1Q18 return of -8.2% vs. S&P 500 of -0.8% United Technologies Corporation (UTX) UTX is a leading industrial holding company which owns a number of high-quality businesses which benefit from favorable long-term growth trends and recurring long-term cash flows Company operates in three distinct principal divisions: 1) Aerospace systems (UTAS) and engines (Pratt & Whitney); […]

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Bill Ackman’s 2017 Annual Letter – ADP, QSR, MDLZ, HHC, CMG, FNMA/FMCC, Exiting Herbalife Short

Automatic Data Processing (ADP) Simple, predictable, FCF generative business that has underperformed its potential Took an active approach to our investment in the company and ran a proxy contest to highlight the significant opportunity for improvement at the company ADP’s management has committed to: Enterprise Product Launch: ADP stated that it has an “upcoming” release […]

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Bill Ackman’s Investor Pres (Jan 2018): Fannie & Freddie; Herbalife Short; Nike, ADP, Mondelez; Chipotle; QSR; HHC; PAH

Pershing Square London Investor Meeting, January 29, 2018 6% net returns since inception (1/1/04) vs. 220.8% S&P 500 Core Investment Principles Simple, predictable, FCF-generative business Formidable barriers to entry Limited exposure to extrinsic factors that we cannot control Generally, low financial leverage levels Minimal capital markets dependency Typically, highly liquid, mid- and large-cap companies Fair […]

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