Another nugget from Leucadia’s (LUK) 10-k. This one has to do with Bill Ackman’s Target (TGT) investment.
As of 12/31, Ackman owned 5.8 million shares and has call options on another 75 million shares. The total cost of the investment was $1.78 billion through Pershing Square IV, L.P.
The net loss on the investment as of 12/31 was $842 million. The loss included interest and dividends received. $135 million of the loss was actually realized, meaning the securities were sold at a loss. The remaining is still being held.
A 47.3% loss…..wow…
Pershing Square IV, L.P. (the “Partnership”) is organized as a limited partnership under the laws of the state of Delaware on May 22, 2007 and commenced operations on June 1, 2007. The objective of the Partnership is to invest all of its assets in Pershing Square IV A, L.P. (the “Subsidiary Partnership”). The Subsidiary Partnership is an exempted limited partnership formed under the limited liability partnership laws of the Cayman Islands on May 31, 2007 and commenced operations on June 1, 2007. The investment objective of the Partnership and the Subsidiary Partnership (collectively, the “PSIV Partnerships”) is to create significant capital appreciation by investing in stock, total return swaps and call options of Target Corporation.
Also,
Pershing, in its sole discretion, may advance or extend the Lock-Up Date for up to one year beyond December 31, 2009 if they believe it is in the best interest of the Partnership to do so.
Disclosure (“none” means no position):None
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One reply on “Ackman’s Target Loss, Wow”
I believe this is Ackman’s single-stock fund… not sure how he convinced people to pony up nearly $2 billion at 2/20 to buy calls on TGT, but kudos to his salesmanship.