Bill Ackman sure attracts more than his fair share of attention. He feuds and makes up with other big-time investors, donates to significant urban initiatives, and tries to take down companies that he thinks screw over low-income minorities (Herbalife, of course).
As an investor, Ackman makes headlines as often as any other activist investor. Shedding a tear at an annual meeting (Target), partnering with a CEO to target a competitor (Allergan), or loudly shorting a bastion of the mortgage finance industry before the housing bubble burst (MBIA), few would call him a quiet shareholder.
Yet, like other significant activist investors Carl Icahn and Nelson Peltz, we have not seen an explanation of Ackman's investment strategy and approach. Based on a review of his over 50 activist projects, from the always helpful SharkRepellent data, we discern a specific method. Overall, his role as a pure portfolio manager, not a business executive, leads to financial and strategic moves, rather than operational ones, with an emphasis on real estate .
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