This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Ackman Adds to Citigroup, Kraft, Family Dollar

Stocks in this article: LOWCPJCPGGPKFTFOFDOC

NEW YORK ( TheStreet) -- Bill Ackman's Pershing Square's investment fund added two big holdings last quarter, Lowe's (LOW) and Canadian Pacific (CP).

No holdings were reduced, while Ackman added to his positions in Kraft Foods (KFT), Beam Inc. (FO), Citigroup (C) and, to a lesser extent, Family Dollar (FDO).

Bill Ackman

Details of the new investments were revealed in a regulatory report. Of Ackman's 10 investments in the fund, Lowe's is No. 7, representing 7.1% of the fund. Canadian Pacific was No. 8, at 3.3%. But that didn't account for shares of the Calgary-based railroad company acquired after the quarter ended.

Investments in JCPenney (JCP) and General Growth Properties (GGP) remained unchanged. They're the two biggest positions, at 18% and 15% of the portfolio.

Ackman announced the purchase of Lowe's at an investor conference last week. According to the filing, he acquired 21 million shares of the home-improvement store in the third quarter. The investment was valued at $410 million as of Sept. 30. Lowe's, in the midst of a turnaround effort, reported third-quarter earnings that declined 44%. In response, Moody's and Fitch each downgraded the company's credit rating by two notches, as they expect the housing market to remain sluggish.

While Ackman's angle on the investment in Lowe's is unclear, there's lots of room for improvement at the retailer. Ackman could also find value in Lowe's real estate, which is 89% company-owned.

>>View Bill Ackman's Portfolio

The 13-F filing released late yesterday shows a 2.4% stake in Canadian Pacific at the end of September, though Ackman announced a 12.2% ownership position in in a separate filing Oct. 18. In that filing, he said he believed the shares of Canadian Pacific were undervalued and planned to have conversations with management, the board or other stockholders about the business.

Ackman is known for making large investments in companies, and then pushing for asset sales or other strategic changes he believes will boost the stock price. However, Ackman told Bloomberg he didn't plan to push the company to sell itself.

Ackman's plan to unlock value in these two new investments remains uncertain, but given his track record as an activist investor, he will be making noise, so the story has just begun.

>To contact the writer of this article, click here: Lindsey Bell.

>To follow Lindsey Bell on Twitter, go to http://twitter.com/lindseycbell.

>To submit a news tip, send an email to: tips@thestreet.com.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,789.40 +111.50 0.67%
S&P 500 1,961.40 +10.58 0.54%
NASDAQ 4,471.5060 +18.7140 0.42%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs