Multiple (PSH portfolio update)
The three reasons
- 1
Long-term track record intact: 503% cumulative vs S&P 163% since 2004 inception
- 2
Portfolio companies executing: MDLZ margins +250bps, APD EPS +14%, QSR EBITDA +16%
- 3
Herbalife thesis validated by FTC injunction and $200mm consumer redress
Primary demands
- Continue Mondelez margin expansion toward 17-18% by 2018 with further upside
- Continue Air Products transformation under CEO Seifi Ghasemi
- Reform Fannie & Freddie with higher capital and regulatory oversight
- Maintain Herbalife short as FTC permanent injunction forces business-model restructuring
KPIs cited
Pattern membership
Where this document fits across the library's 12 rhetorical / structural patterns.
Notable slides (7)
Notes
LP annual update for Pershing Square Holdings covering 2016 (presented Jan 26, 2017); filename date prefix '2016-02' is misleading — cover is 1/26/2017. Multi-position portfolio recap rather than single-target activist thesis. Covers MDLZ, APD, QSR, Howard Hughes, Chipotle (undisclosed), Fannie/Freddie, Valeant, Platform Specialty, Nomad, Herbalife (short), plus exits CP and Zoetis. Pitched against a brutal two-year drawdown (-21% 2015, -13.5% 2016) largely from Valeant; Ackman uses long-term cumulative returns and portfolio-by-portfolio business progress as the defensive narrative. Strong use of annotated share-price timelines tying catalyst events to price (slides 22/23, 28/29, 33/34, 86). Herbalife section cites FTC complaint verbatim as third-party vindication of the pyramid-scheme thesis. Campaign phase set to follow_up because each sub-thesis had been publicly disclosed earlier (MDLZ 2015, APD 2013, Herbalife 2012, Fannie/Freddie 2014).