Billionaire investor Bill Ackman posted an 11% gain in March after turning $27 million into $2.6 billion with coronavirus bets
Bill Ackman's Pershing Square made an 11.1% net gain in March after betting that markets would tank because of the novel coronavirus. The billionaire investor's hedge fund spent $27 million on hedges that surged in value to $2.6 billion during the market sell-off, balancing out declines in its equity portfolio. Pershing Square recorded a 3.3% net gain for the first quarter, a sharp rebound from its year-to-date loss of 7.1% at the end of February. Ackman last month denied deliberately trying to scare investors to help his hedges, arguing that he was up front about Pershing Square's strategy. Visit Business Insider's homepage for more stories.
Bill Ackman's Pershing Square posted an 11.1% net gain in March after betting that the novel coronavirus would tank the stock market, according to its latest monthly report. The billionaire investor's hedge fund spent $27 million on credit-default swaps — which insure the buyer against an asset defaulting — on investment-grade and high-yield credit-default-swap indexes in February. Those hedges ballooned in value to $2.6 billion after markets plunged last month, roughly offsetting Pershing Square's losses on its equity portfolio, Ackman said last week. Read more: GOLDMAN SACHS: These 13 cheap stocks are poised for years of better-than-expected profits — and they're must-haves as the coronavirus wipes out earnings in 2020 Pershing Square plowed more than $2 billion of the windfall into equities by March 18, before the stock market rallied. Its strategy delivered a 3.3% net gain for the first quarter, marking a sharp rebound from net losses in January and February. The fund performed especially well in the final two weeks of March, given it was down 6.5% for the year on March 17. Indeed, its net asset value swelled 10% — to $27.72 a share from $25.19 — during that period. Read more: 'Still too high': Goldman's global equity chief lays out 4 reasons why the stock market will melt down further before it fully captures the coronavirus crisis Critics accused Ackman of manipulating markets last month after an emotional CNBC interview in which he warned of mass casualties, industries collapsing, and a deep recession. Ackman denied the claims in a letter to investors and a Twitter thread, arguing he had been up front about Pershing Square's hedges and buying equities.Join the conversation about this story » NOW WATCH: Pathologists debunk 13 myths about the coronavirus, including why face masks won't help
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Warren Buffett, George Soros, and other billionaire investors made big moves last quarter. Here are 11 of their juiciest trades.
Billionaire investors including Warren Buffett and George Soros made striking changes to their portfolios last quarter....Billionaire investors including Warren Buffett and George Soros made striking changes to their portfolios last quarter. David Einhorn's Greenlight Capital took a stake in Disney, Dan Loeb's Third Point tripled its Amazon holdings, and Seth Klarman's Baupost Group backed Google and Facebook. We picked out some of the most noteworthy trades in the period. Visit Business Insider's homepage for more stories. Warren Buffett, George Soros, and other billionaire investors made significant changes to their portfolios in the first quarter, as they looked to capitalize on the coronavirus sell-off and weather the market meltdown. David Einhorn's Greenlight Capital, Dan Loeb's Third Point, Bill Ackman's Pershing Square, and other high-profile funds revealed their purchases and sales in financial filings last week. Here are 11 of the juiciest trades in the period:Warren Buffett's Berkshire Hathaway sold 84% of its Goldman Sachs stake The famed investor's company threw a $5 billion lifeline to the investment bank in 2008, in exchange for preferred shares paying a 10% dividend, and warrants allowing it to buy a chunk of Goldman's common stock at a discount in the future. After selling most of its stake last quarter, Berkshire has raked in more than $3 billion from the deal so far. Source: SEC George Soros' fund bought Disney and Peloton shares Soros Fund Management reported a new Disney stake worth about $5 million at the end of March. It also bolstered its Peloton stake more than ten-fold to nearly 3 million shares, worth about $79 million at the time. Source: SEC David Einhorn's Greenlight Capital piled into Disney, Tesla, and Berkshire Hathaway Einhorn's fund revealed new positions in all three companies. It reported $11 million stakes in both Disney and Berkshire at the end of March, and held about $6 million in Tesla stock. Source: SEC Read more: 10 big-money investors each share the single market risk they think traders are overlooking right now Seth Klarman's Baupost Group snapped up Google and Facebook stock The value investor dubbed "the next Warren Buffett" was more adventurous than the Berkshire boss in the period. Klarman's Baupost revealed stakes in Google-parent Alphabet and Facebook, worth about $350 million and $330 million respectively. Source: SEC Stanley Druckenmiller's fund bought Disney shares, dumped Snap and Uber Druckenmiller's Duquesne Family Office took a $3 million stake in Disney last quarter. It also exited its Snap position, and slashed its Uber holdings from about 2.6 million shares to only 400. Source: SEC Dan Loeb's Third Point made big bets on Amazon and Disney Loeb's fund tripled its Amazon stake to 215,000 shares, worth $419 million at the end of March. It also took a stake in Disney valued at $138 million. Source: SEC Read more: Tens of billions in redemptions, hundreds of billions in losses: Here's a look at how the hedge fund industry hemorrhaged money in March Bill Ackman's Pershing Square bought Berkshire Hathaway and Starbucks Ackman's fund used the $2.6 billion it made by hedging the market meltdown to bolster its stakes in several key holdings last quarter. It grew its Berkshire stake by more than a third to 5.5 million shares, its Hilton holdings by almost a third to roughly 14 million shares, and its Starbucks position by more than 80% to north of 10 million shares. Source: SEC Carl Icahn nearly quadrupled his stake in Occidental Petroleum Icahn bolstered his investment in debt-ridden Occidental Petroleum by more than 290% last quarter, from about 23 million shares to 89 million. The activist investor complained in April after the oil-and-gas giant opted to pay its dividend to Warren Buffett in stock to save cash. "I can't argue with you that it was one of the most ridiculous deals that I've ever seen," he said in an interview last month. Source: SEC Howard Marks' Oaktree Capital more than doubled its Alibaba holdings Oaktree boosted its stake in the Chinese e-commerce titan by roughly 140% to 391,000 shares last quarter. The stake was worth about $76 million on March 31. Marks has been a vocal skeptic of the recent US stock rally. He warned it was pretty much impossible to predict how the coronavirus pandemic will pan out, and argued "the world is more than 15% screwed up." Source: SEC Read more: Buy these 14 bank stocks that are jarringly cheap and positioned for extreme moves higher, BTIG says David Tepper's fund bought Netflix, Tesla, and Twitter Tepper's Appaloosa Management boosted its technology investments last quarter. It built a $136 million stake in Twitter, a $96 million stake in Netflix, and positions valued below $25 million in Microsoft and Tesla. Source: SEC John Paulson more than quadrupled his Tiffany's stake Paulson & Co boosted its Tiffany & Co holdings from about 134,000 shares to more than 600,000 last quarter. The stakes was valued at $78 million at the end of march. The iconic jeweler is set to be acquired by LVMH, the French luxury conglomerate that owns Louis Vuitton, Moët, Hennessy, and other high-end brands. Source: SEC Read more: A BlackRock money manager overseeing the top healthcare fund of the past 20 years pinpoints 3 growth areas she's betting on — and one she's avoiding amid the coronavirus recovery
Warren Buffett will 'let everybody know' once he invests the bulk of Berkshire Hathaway's $128 billion cash pile, Bill Ackman says
Warren Buffett stepped in to reassure investors and bail out struggling companies during the 2008 financial...Warren Buffett stepped in to reassure investors and bail out struggling companies during the 2008 financial crisis, but has been quiet during the novel coronavirus meltdown. The Berkshire Hathaway boss may be investing most of the conglomerate's $128 billion cash pile and not shouting about it to avoid raising prices, hedge fund billionaire Bill Ackman told Vanity Fair. "After he invests that $100 billion and change," the Pershing Square chief told the magazine, "he'll let everybody know." Pershing boosted its stakes in Berkshire Hathaway and other companies last quarter, while Berkshire has only revealed sales in recent weeks. Visit Business Insider's homepage for more stories. After bailing out distressed companies and penning columns to calm investors during the 2008 financial crisis, Warren Buffett has kept a low profile so far during the market's coronavirus driven meltdown in 2020. The billionaire boss of Berkshire Hathaway might be busy plowing a big chunk of the conglomerate's $128 billion cash pile into stocks, and keeping quiet to avoid spiking prices, hedge fund billionaire Bill Ackman told Vanity Fair. "After he invests that $100 billion and change," the Pershing Square chief told the magazine, "he'll let everybody know." Buffett might also prefer to work in the shadows rather than shoulder the responsibility of reassuring Wall Street again. "Maybe he doesn't want to be the hero this time around," an unnamed "longtime Buffett watcher" told Vanity Fair. Read more: A Wall Street strategy chief lays out 8 stock trades that can give investors an extra jolt of returns as the post-coronavirus rally enters a new phase Ackman, a longtime admirer of Buffett, certainly capitalized on the recent sell-off. After the value of Pershing Square's shares in Hilton, Burger King-parent Restaurant Brands, Lowe's, and Berkshire Hathaway plunged, he boosted its stakes in all four companies by more than 25%. Ackman also reinvested about $720 million into Starbucks after exiting a position in the coffee giant in January. Meanwhile, Berkshire has sold about $390 million worth of Delta Air Lines and Southwest Airlines stock and trimmed its stake in Bank of New York Mellon in recent weeks. Buffett has been "circling the hardest-hit companies in the travel, lodging and entertainment sectors," The Wall Street Journal reported this month, but no deals have been made public. Berkshire's cash pile exceeded the individual market capitalizations of Tesla, Starbucks, Nike, and McDonald's at points in March, underscoring its wealth of opportunities. Read more: Bank of America's wealth-management chief overseeing $2.7 trillion says investors must make 3 permanent changes to thrive in a market ravaged by the coronavirusJoin the conversation about this story » NOW WATCH: Why electric planes haven't taken off yet