Bill Ackman's Biggest Wins: A Look at His Most Profitable Trades

The Ackman Hall of Fame: A Chronicle of His Greatest Hits

Bill Ackman has had his share of failures, but he has also had some spectacular successes. His ability to identify undervalued companies and access their value has led to some of the most profitable trades in recent history. Let’s take a look at some of his biggest wins.

General Growth Properties (GGP)

In the depths of the 2008 financial crisis, Ackman made a bold bet on General Growth Properties, a mall operator that had filed for bankruptcy. Ackman saw that the company’s assets were worth far more than its debts. He invested heavily in the company’s stock and debt, and he played a key role in its restructuring. When GGP emerged from bankruptcy, its stock soared, and Pershing Square made a profit of over $1.6 billion.

Canadian Pacific Railway (CP)

Ackman’s investment in Canadian Pacific is a textbook example of his activist strategy. He saw a company that was underperforming its peers and that was in desperate need of a management shake-up. He launched a proxy fight, won, and installed a new CEO. The new management team turned the company around, and the stock price more than doubled. Pershing Square’s profit on the investment was over $2 billion.

The COVID-19 Hedge

In early 2020, Ackman made a brilliant bet against the market that netted Pershing Square a profit of $2.6 billion in just a few weeks. He purchased credit default swaps that would pay off if corporate bond markets collapsed. When the COVID-19 pandemic sent markets into a tailspin, Ackman’s hedge paid off in a big way. It was a masterful trade that protected his portfolio from the downturn and allowed him to go on the offensive when the market bottomed.

What These Wins Have in Common

What do these winning trades have in common? They were all based on a deep understanding of the investment, a clear catalyst for value creation, and a high degree of conviction. They were also all contrarian bets that went against the prevailing market sentiment. These are the hallmarks of a Bill Ackman investment, and they are the reason why he is one of the most successful investors of his generation.