Value Investing

Bill Ackman Q1 Conference call With Investors [LIVE]

Bill Ackman will be speaking to Pershing investors on the company’s Q1 conference call. Readers can find the video and some notes below.

UPDATE 2:45PM EST – the full audio video is now available and can be found below

In order to get caught up on some of the latest from Ackman see his recent investor presentation on April 28th.

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


Fannie Mae & Freddie Mac (GSEs)

 Update for 2015

Net Worth Sweep is an untenable economic arrangement GSEs are vital to the U.S. mortgage market Continued progress in unlawful takings case in U.S Court of Federal Claims

Dismissal of lawsuit in U.S. District Court of Iowa due to similarities with U.S. District Court of D.C. case, which is on appeal

Chairman of Senate Judiciary committee initiated probe of net worth sweep

Since we began accumulating our positions in October 2013, Fannie Mae and Freddie Mac share prices have increased 84% and 86%, respectively. From our average cost basis prior to the position being made public, Fannie Mae and Freddie Mac share prices have increased 20% and 22%, respectively


See our notes from the Bill Ackman presentation below.

Bill Ackman Pershing Square 2014 Letter
Bill Ackman