Whale Watching: Bill Ackman Edition

Whenever I want to find good investment ideas, I like to take a look at what the top hedge fund managers are doing. This week lets review Bill Ackman's top 10 holdings.
Ackman is known for running a pretty concentrated portfolio, compared to other large hedge funds that sometimes own 100's of stocks.

Note: This should not be considered a comprehensive list because Ackman often uses total return swaps and other derivatives that would not show up on a 13F filing. Also this does not include his short positions, warrants, etc.

Here is Pershing Square Capital Management's top 10 long positions:

Data current as of 11/15/2010 and is updated to reflect Ackman's new ownership statement regarding General Growth Properties and Howard Hughes Corp.

1. General Growth Properties (GGP)----$1,427,797,056 Common Stock
2. Kraft Foods Inc (KFT)----$852,724,000 Class A Stock
3. Target Corp (TGT)----$755,850,000 Common Stock
4. Citigroup Inc (C)----$571,254,000 Common Stock
5. JC Penny (JCP)----$427,052,000 Common Stock
6. Fortune Brands (FO )----$367,529,000 Common Stock
7. Automatic Data Processing (ADP)----$365,687,000 Common Stock
8. Corrections Corp of America (CXW)----$269,917,000 Common Stock
9. Howard Hughes Corp (HHC)----$230,356,728 Common Stock
10. Landry's Restaurants Inc----$38,063,000 Common Stock

Ackman is probably one of the best investors when it comes to commercial real estate. Case in point: General Growth was considered worthless in late 2008, just when Ackman was buying the stock. It turned out to be a huge home run for his investors. Other notable holdings include JC Penny because of its large real estate holdings, no doubt. The idea is to force JC Penny to implement a sale/leaseback transaction  to generate cash and buyback stock. Fortune Brands is a relatively new investment for Ackman and he is agitating for a break-up of the company to unlock shareholder value.

Black Swan Insights

Related Articles:
Whale Watching: George Soros Edition
Marc Faber's November Outlook


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