Pershing Square 2015 European Investor Meeting [Slides]

0
Pershing Square 2015 European Investor Meeting [Slides]

Bill Ackman’s Pershing Square Capital Management European Investor Meeting for April 28, 2015 discussing investments in Allergan, Valeant, Herbalife, Canadian Pacific and more.

Play Quizzes 4

Pershing Square – Allergan Inc

  • At investment inception, ~$37bn market cap specialty pharmaceutical company
  • Leader in aesthetics, dermatology, and ophthalmology ?
  • In February 2014, Pershing Square formed JV with Valeant to assist in Allergan merger
  • Between February 25th and April 21st , Pershing Square acquired stock and options representing 9.7% of Allergan at an average cost of $128/share
  • On April 22nd, Valeant and Pershing Square announced an unsolicited offer to acquire Allergan for $161 per share, a 38% premium to Allergan’s unaffected stock price
  • On March 17th, Allergan merged with Actavis for $242 per share in cash and stock representing a 88% premium to Pershing Square’s cost basis

Valeant Pharmaceuticals

  • At investment inception, ~$54bn market cap specialty pharmaceutical company
  • Leader in dermatology, ophthalmology, branded generics, and gastroenterology
  • Pershing Square developed a strong relationship with Valeant during our 2014 partnership
  • Pershing Square was prohibited from acquiring shares in Valeant until January 2015
  • In February 2015, Pershing Square bought its first shares in Valeant at a cost of ~$161
  • In late February 2015, acquired Salix for $15.8bn
  • Today, Pershing Square owns 19.47m shares of Valeant, representing 5.7% of the company, at an average cost of $197

Pershing Square

How Value Investors Can Win With Tech And “Fallen” Growth Stocks

Valuation Present ValueMany value investors have given up on their strategy over the last 15 years amid concerns that value investing no longer worked. However, some made small adjustments to their strategy but remained value investors to the core. Now all of the value investors who held fast to their investment philosophy are being rewarded as value Read More

Pershing Square’s Investment in Valeant

  • We bought our shares with the confidence of:
    • Our extensive initial research of the company
    • The validation of our work over the following year
    • Increased conviction in management, following our 10-month Allergan partnership
  • We bought our first shares at ~$161 share on February 9th, 2015
    • Today, we own 5.7% of Valeant, at an average cost of ~$196

CP: Remarkable Transformation Continues

  • 2014 results highlight continued rapid pace of transformation under Hunter Harrison and the reconstituted CP Board
    • Annual earnings per share growth of 32% despite record winter conditions in Q1 and lingering industry-wide congestion
    • Operating Ratio of 64.7%, third-best in industry
  • CP reached its four-year targets, including a 65% Operating Ratio, in just two years given the rapid pace of the company’s operational transformation
  • Board and management-led initiatives on capital allocation are creating shareholder value
    • Prudent target leverage of 2x EBITDA
    • Repurchased $2bn of stock, or 6% of shares outstanding, at $199 CAD per share
  • In May, Hunter Harrison’s contract was extended one year through 2017

See full PDF below.

Updated on

Sheeraz is our COO (Chief - Operations), his primary duty is curating and editing of ValueWalk. He is main reason behind the rapid growth of the business. Sheeraz previously ran a taxation firm. He is an expert in technology, he has over 5.5 years of design, development and roll-out experience for SEO and SEM. - Email: sraza(at)valuewalk.com
Previous article Getting Centers Of Influence To Refer
Next article Endurance International Group Hldgs Inc (EIGI): A Web Of Deceit

No posts to display