• 31 Aug 2011 at 5:06 PM

Bill Ackman Isn’t Ready To Introduce Investors To His New Money-Maker Yet

By Bess Levin

In his most recent letter to Pershing Square investors, hedge fund manager Bill Ackman dropped a bomb. The fund has added a new star to its portfolio and a big one at that. “In the past, we have made asymmetric investments which are not for hedging purposes, but which also offer large payoffs on relatively modest commitments of capital where we similarly believe that the market has mispriced the probability of a positive outcome,” Bill wrote excitedly. “We recently identified an investment that broadly falls into that category.” What, praytell, would that investment be?

Ackman would love nothing more than to clue you in but now is not the time. Maybe in “the upcoming months,” but not now, shhh, no, not now, not yet. Rest assured, though, “this investment offers the potential for extraordinary profits.” Believe Bill, he’s dying to share the name with you but he just can’t yet. It’s too soon. The cake still needs time to rise, the frosting to be spread. No, it’s better this way. All he can say is that he’s giddier than the day he had his portrait taken at JCPenney. Giddier than the day he found out there was a store where you could buy stuff for just one dollar. Giddier than the day he first laid eyes on that little red bull’s eye. But he can’t say anything right now. If you want to take guesses though, he won’t stop you.

Ackman Teases Investors With Mystery Trade [CNBC]

Comments (41)

  1. 1
    Posted by VonSloneker | August 31, 2011 at 5:10 PM

    Please don't say Clorox

    -Carl I.

    13F review reminder set..

  2. 2
    Posted by Guest | August 31, 2011 at 5:15 PM

    gotta be light squared…

  3. 3
    Posted by Alt_EST | August 31, 2011 at 5:16 PM

    Lightsquared.

  4. 4
    Posted by UBS MD | August 31, 2011 at 5:21 PM

    It's Ben Bernanke, isn't it?

  5. 5
    Posted by Curious | August 31, 2011 at 5:35 PM

    I bet he finally found a crack in his butt.

  6. 6
    Posted by ih8edjfkjr | August 31, 2011 at 5:48 PM

    Beans. Magic Beans.

  7. 7
    Posted by alpha | August 31, 2011 at 5:48 PM

    bac leaps

  8. 8
    Posted by MeVC | August 31, 2011 at 5:53 PM

    "frosting to be spread?" I don't want to be anywhere near his frosting.

  9. 9
    Posted by Non-Entity HF Mngr | August 31, 2011 at 5:58 PM

    Look at that subtle off-red coloring. The tasteful fish eye gradation. Oh my God, it may even be an Instagram(tm).

  10. 10
    Posted by W. Tilson | August 31, 2011 at 6:04 PM

    Friends don't let friends sell amway.

  11. 11
    Posted by EasternBeast | August 31, 2011 at 6:18 PM

    Hope it wasn't BAC.

    Regards,
    WB

  12. 12
    Posted by Hillbilly | August 31, 2011 at 6:23 PM

    I love going to the story and buying things for a dollar.

  13. 13
    Posted by Anonymous | August 31, 2011 at 6:40 PM

    Headon!
    Apply directly to the forehead!
    Headon!
    Apply directly to the forehead!
    Headon!
    Apply directly to the forehead!

  14. 14
    Posted by Greggums | August 31, 2011 at 6:47 PM

    Synthetic blanus!

  15. 15
    Posted by Bill Ackman | August 31, 2011 at 6:56 PM

    it's MBIA.

    -Bill

  16. 16
    Posted by guest | August 31, 2011 at 7:22 PM

    I laughed. FML.

  17. 17
    Posted by Whitney Tilson | August 31, 2011 at 7:29 PM

    Tell me, tell me, TELL ME!!!! I want to buy it, too.

    -Whitney

    PS. http://www.southbronxschool.com/2011/01/whitney-t...

  18. 18
    Posted by Guest | August 31, 2011 at 9:37 PM

    More Ackman letter http://www.marketfolly.com/2011/08/why-bill-ackma...

  19. 19
    Posted by WTF__k | August 31, 2011 at 10:20 PM

    The credit card processing franchise at the Hustler Club?

  20. 20
    Posted by Guest | August 31, 2011 at 11:30 PM

    The dollar store…synergies galore!

  21. 21
    Posted by guest | September 1, 2011 at 12:13 AM

    I will laugh hard if it's another legal entity that takes 2/20 on a single name

  22. 22
    Posted by S LeBouf | September 1, 2011 at 4:26 AM

    Dealbreaker Equity. Bess is on the secondary market.

  23. 23
    Posted by LloydB | September 1, 2011 at 7:05 AM

    A short position on facebook structured by the Squid.

  24. 24
    Posted by ohhh herrro | September 1, 2011 at 7:51 AM

    DLTR….SHHHHHH

  25. 25
    Posted by Stupid Daikini | September 1, 2011 at 8:07 AM

    Rowing machines

  26. 26
    Posted by florida | September 1, 2011 at 8:44 AM

    Underwear stolen by gnomes

  27. 27
    Posted by Guest | September 1, 2011 at 8:53 AM

    I DO!!!

    - L. Tilton

  28. 28
    Posted by Guest | September 1, 2011 at 8:58 AM

    BAC? I heard Paulson's position is killing it.

  29. 29
    Posted by Steve | September 1, 2011 at 9:40 AM

    2/20 fund on the GLD.

  30. 30
    Posted by Guest | September 1, 2011 at 10:41 AM

    UNTD

  31. 31
    Posted by Steady Income Source | September 1, 2011 at 10:46 AM

    Why not Borders? He supposedly owns a ton of common and it's going bankrupt. Pull it from the grave, be a hero, and then launch your own IPO!

  32. 32
    Posted by Mr X | September 1, 2011 at 10:49 AM

    Call options on the Hong Kong dollar, betting on an unlinking the USD.

  33. 33
    Posted by Frying Dutchman | September 1, 2011 at 1:25 PM

    Tulips.

  34. 34
    Posted by Anonymous | September 1, 2011 at 1:38 PM

    Its fucking borders, I knew it!!!!

    Bought shares under a buck? Check

    Asymmetric returns via shareholder “recovery”? Check

    Influence the process due to large holding? Check.

    He’s going to use bgp to buy barnes and nobles. And that’s why malone only took a 200mil stake instead of an outright buyout.

    Fucking brilliant.

  35. 35
    Posted by guest | September 1, 2011 at 2:10 PM

    Pork bellies and orange juice

    -Mortimer

  36. 36
    Posted by Bair right on Bear | September 2, 2011 at 7:15 PM

    Anyone have the full Pershing Square letter? Post the PDF, please.

  37. 37
    Posted by abcd123 | September 6, 2011 at 11:52 PM

    This has got to be borders.

    Buying shares under a dollar? Check. His warrants were readjusted down to 65 cents last september.
    "Recovery" for shareholders? I would think that typically applies in a bankruptcy situation.
    "Market perceives shareholder recovery to be de minimis, but our active intervention can result in dirrent outcome?" So hes got to have a large, majority ownership.

    Im guessing this ties into the fact that malone ducked out of buying barnes and nobles in entirety. His investment in BKS is essentially a long call option on the stock, he stands to profit significantly and for little time spent as a shareholder, if ackman recaps borders and uses them as a vehicle to buy BKS. That way the significant operating losses that borders has accumulated will also survive.

    If Im right, Im only marginally less of a ninja than Ackman himself.

  38. 38
    Posted by asf | September 14, 2011 at 1:56 PM

    You got it right. Must be nice to have insider info

  39. 39
    Posted by Mr X | September 14, 2011 at 2:31 PM

    no, just the same deutsche bank coverage pitching the trade. Its a good one I think, just not from Bill's fertile mind.

  40. 40
    Posted by bababooey | September 14, 2011 at 3:45 PM

    I just bought a copy of they Call Me Bababooey for $0.50 at Borders… trust me, that grave's filled

  41. 41
    Posted by andrew | September 15, 2011 at 1:23 AM

    anything else that DB is pitching that you would care to share?

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