Bill Ackman

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What Bill Ackman's Bad Year Says About Hedge Fund Managers

By , Associate Editor, Money Morning • @DavidGZeiler -

Bill Ackman

When hedge fund manager Bill Ackman warned his shareholders Tuesday that 2015 would likely be his worst ever, most investors probably had the same reaction: "I'm glad I don't have any money with that guy."

But celebrity investors like Bill Ackman - who has built a reputation as one of the top activist investors - have big followings among retail investors.

Here's why Ackman perfectly illustrates why imitating the strategies of hedge fund managers is such a bad idea...

For the Likes of Nelson Peltz and Carl Icahn, the Targets Are Getting Bigger

By , Associate Editor, Money Morning • @DavidGZeiler -

No company is immune from activist investors. That point was hammered home anew when Nelson Peltz announced Monday he'd bought $2.5 billion of General Electric (NYSE: GE) stock, making him a top 10 shareholder.

Every year, more household names are targeted, including many widely held stocks.

Here's what to do when a stock you own lands in the crosshairs of a Nelson Peltz...

Should You Invest Like Carl Icahn and Other Activist Investors?

By , Chief Investment Strategist, Money Morning • @ShahGilani_TW -

carl icahn

Many investors would like to be able to get a piece of the success that activist investors like Carl Icahn and Bill Ackman enjoy.

Over the past decade, activist-run funds have returned nearly 267% - more than double that of the Standard & Poor's 500 index.

In the following video, Money Morning Capital Wave Strategist Shah Gilani explains how activist investors like Carl Icahn operate -- and whether investors should piggyback on their moves...

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Bill Ackman-Herbalife FBI Investigation Leads Stock Market News Today

By , Executive Producer, Money Morning -

Stock market news today

Stock market news today, March 13, 2015: Good morning! U.S. stock futures forecasted a 30-point decrease from yesterday's close. The DJIA surged 259 points Thursday, gaining back most of Tuesday's losses. Nine of the S&P 500's 10 indices were on the rise, with the energy sector the lone decliner.

Today will be a quiet day on the earnings front, while investors focus on a fresh consumer sentiment report. On the international front, keep an eye on Greece. The country is supposed to pay back 340 million euros ($360 million) of its International Monetary Fund loan today.

Here's what else you should know in stock market news today - including your "Money Morning Tip of the Day"...

The Only Public Hedge Fund You Should Own

By , Global Credit Strategist, Money Morning • @MichaelELewitt -

market volatility

Hedge fund managers who offer shares to the general public have lost investors billions. Och-Ziff Capital Management Group has lost over half of its value since its debut during the financial crisis. Fortress Investment Group has lost three quarters over the same time period. But there is one hedge fund that just might live up to the hype. I'm going to tell you about it here.

Mind you, if you have $10,000 or more to invest, you can skip the whole hedge fund hoopla and invest in so called "liquidity products." These are hybrids between hedge funds and mutual funds - essentially, hedge funds that are registered with the Securities and Exchange Commission. Blackrock, Deutsche Asset Management, PIMCO and a host of others have been pumping these out in recent years.

Or, if you're determined to get alternative asset exposure, you could invest in one of the private equity firms that went public around the time of the financial crisis. The Blackstone Group has treaded water, falling far behind the S&P and notching an 8%-plus gain since it went public. KKR & Co. has actually notched a 142% return since its IPO, beating the S&P handily.

But the ranks of profitable hedge funds with public shares are very thin - until now...

How to Profit from Today's Biggest Activist Investors

By , Associate Editor, Money Morning • @DavidGZeiler -

how to profit

Many investors would like to be able to get a piece of the success that activist investors like Bill Ackman and Carl Icahn enjoy.

Over the past decade, activist-run funds have returned nearly 267% - more than double that of the Standard & Poor's 500 index.

What many don't realize is that figuring out how to profit from the moves of today's biggest activist investors is easier than it looks.

Here's how you can piggyback on their success...

Pershing Square IPO: Investing in Bill Ackman

By , Associate Editor, Money Morning • @KyleAndersonMM -

Pershing Square IPO

Activist investor Bill Ackman announced yesterday that he is planning a Pershing Square IPO, a move that will bring the $15 billion hedge fund public.

As an activist investor, Ackman is known for making big, high-profile bets. Bringing his hedge fund public is just the latest example.

For investors will to take a bet on the Pershing Square IPO, here’s what they’d be wagering on…

Herbalife (NYSE: HLF) Stock on Wild Ride Thanks to Ongoing Long-Short Battle

By , Associate Editor, Money Morning • @JimBach22 -

HLF stock

Bill Ackman's battle with Herbalife Ltd. (NYSE: HLF) has doomed the nutritional supplement maker's stock to bouts of wild volatility.

In just the last month HLF stock has dropped 11.2%, surged ahead 25.5%, fell another 26.8%, and finally advanced another 5%.

Here’s how it started and what’s been behind HLF stock’s recent rollercoaster ride…

Selling Short vs. Going Long: Wall Street's Clash over Herbalife Stock (NYSE: HLF)

By , Associate Editor, Money Morning • @JimBach22 -

Billionaire hedge fund manager Bill Ackman has called Herbalife's multi-level marketing model a "pyramid scheme" and has taken out an expensive bet against the company.

But other noted money managers like Carl Icahn are defending Herbalife (NYSE: HLF) and taking the other side of the bet, igniting a skirmish between short sellers and long buyers.

HLF stock is going along for the ride, as the warring billionaires trade blows and the share price goes violently up and down. This week, HLF was particularly volatile, here’s why…

Herbalife Stock (NYSE: HLF) Soars Despite Ackman's Effort; Here's How This Battle Began

By , Associate Editor, Money Morning • @JimBach22 -

Herbalife stock

Bill Ackman, founder of Pershing Square Capital Management LLC, may consider his public condemnation of Herbalife Ltd. (NYSE: HLF) "the most important presentation" of his career, but you wouldn't think so looking at Herbalife stock today (Tuesday).

It's just the latest battle in a two-year war between short sellers, activist investors, and a nutritional supplement company.

Here's a closer look at that tortured road...

Is Bill Ackman's Air Products Helium Bet Full of Hot Air?

By , Executive Producer, Money Morning -

Bill Ackman is trying to find a winner. Over the past two weeks, Wall Street kept its eye on one of richest and shrewdest hedge fund managers in the game.

Speculation about his target increased as he informed investors that he was seeking to make another splash in an "undervalued" company. And he certainly did, his biggest splash ever.

Ackman's recent $2.2 billion stake in Air Products & Chemicals Inc. (NYSE: APD) is certainly a buoyant pick. His Pershing Square Capital Management acquired a 9.8% stake in the industrial gas company, which is also the world's largest producer of helium and hydrogen.

It was a lofty bet by Ackman, who had garnered attention for a quiet accumulation of $1 billion in recent weeks. Earlier this month, Ackman told investors that he was specifically targeting a large-capitalization, investment-grade company with a lot of upside.

The purchase of APD could prove to be even shrewder, if Congress is unable to address the looming shortage of helium, a critical industrial gas in the production of MRI machines, semiconductors, aerospace equipment and lasers.

And Ackman can profit as demand continues to surge around the world.

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