Ackman Aims at Target's Land

A campaign to unlock value at Target(TGT Quote) is Bill Ackman's boldest move yet. And if history is any guide, the hedge fund manager is quietly employing his large network of investment banker and real estate contacts to help get backing for what will be his most difficult crusade ever.

Ackman, the head of Pershing Square Capital Management, has gained a reputation for innovative and audacious ideas to promote improvements at Wendy's(WEN Quote) and McDonald's(MCD Quote) that resulted in millions of dollars of value for shareholders.

In July, Ackman surprised Wall Street by zeroing in on Target, disclosing a 9.6% stake in the discount retailer because he felt the stock was undervalued. The fund manager said he wants to find ways to improve value at Target but didn't provide details of his intentions.

Several industry sources say that Ackman, as with his prior campaigns, is looking to generate more value from Target's real estate assets.

Getting Wall Street on board with that idea likely will be much more challenging than with his past efforts. There's not to complain about at Target, considering the health of the company and the belief that it's one of the most respected, best-run retailers in the U.S.

But it's little known that Ackman has ties to Wall Street heavy hitters who in the past have backed his proposals and helped his quests gain credence.