Target Tears

  • 12 Apr 2010 at 2:11 PM

Will Bill Ackman Revive His Target Fight?

By Zachery Kouwe

Remember about a year ago when Bill Ackman shed tears at Target’s annual shareholder meeting after losing one of the most expensive proxy fights in history against the big box retailer?

At the time, Pershing Square IV, the Target-focused fund Ackman collected $2 billion for, had lost almost 90 percent of its value. The losses prompted Ackman to “apologize profusely” to investors in the fund and declare the losses “one of the greatest disappointments of my career to date.” Pershing also restructured PSIV, cutting fees and letting some investors out early.

Fast forward a year and PSIV is now up 175 percent since the restructuring, according to an investor in the fund (although it’s still down since its inception in the summer of 2007.) Ackman has also scored big on the mall owner General Growth Properties, chalking up absurd returns of over 20 time his original investment despite criticism of his position from other hedge fund managers. Continue reading »

  • 28 May 2009 at 3:03 PM

You Can Take Your Bull’s Eye And Shove It!

By Bess Levin

Target Corp.’s shareholders have re-elected the company’s slate of directors, rejecting a hedge fund’s alternate slate, according to preliminary vote totals.
The head of Pershing Square Capital Management has argued that the struggling retailer needed new perspective, especially in the areas of retail and real estate so it can better compete with rival Wal-Mart Stores Inc.
Shareholders rejected those arguments at Target’s shareholder meeting outside Milwaukee on Thursday. Shareholders also sided with the company in approving a measure that sets the board’s size at 12 members.

Target shareholders reject Ackman board slate [AP]
Update: Margaret Brennan: “Reportedly Ackmann himself is very disappointed with the results; he in fact choked up during his presentation today.”