In three weeks, pretty much every American with any exposure to equities will own a little piece of Elon Musk's foibles and failure to deliver anything like what he promises, as Tesla at last makes its entrance into the S&P 500 (and all at once, at that). And in two-and-a-half, British investors may become passive participants in the Ackmanaissance, like it or not.
Fund manager Bill Ackman’s Pershing Square Holdings is on the brink of being included in the UK’s blue chip FTSE 100 index, after delivering an impressive run of performance during the coronavirus pandemic.
The fund’s share price has jumped by 116% from 23 March when it stood at 1,134p, to 2,459p on 30 November….
Changes to the FTSE index will be announced on 2 December based on closing prices on 1 December, with changes effective after close on 18 December.
To enter the FTSE 100 index, potential joiners have to number in the top 90 by market capitalisation to ensure inclusion
Of course, as Musk can tell his friend and possible future landlord, if he keeps up his improbable run, they can’t keep him out forever. And if Ackman’s ever able to consummate a deal with that giant SPAC he raised, he and Musk can toast to being S&P 500 buddies with some delicious Tesla tequila.
Billionaire Bill Ackman’s had a stellar pandemic performance with Pershing Square – here’s what’s next [FN]
S&P’s decision to add Tesla in one shot demonstrates the power of passive investing [CNBC]
