Alert: Investor Bill Ackman Is Bullish On Pizza
A famous hedge fund manager has made a big bet on the food and restaurant industry, precisely on a popular pizza chain. That pizza chain is the popular Domino’s Pizza and the hedge fund manager is Bill Ackman.
- Bill Ackman of Pershing Square Capital Management has built up a 6% stake in Domino’s Pizza with his hedge fund, he revealed on Wednesday in a statement at The Wall Street Journal’s virtual Future of Everything Festival.
- The stake Ackman built up is worth almost $1bn at current prices. He swapped a stake in coffee chain Starbucks, for which his hedge fund held over $1bn worth of shares as of 2020 ending, for a big stake in Domino’s Pizza.
- As usual, Ackman’s revelation of his Domino’s position saw investors react positively, sending Domino’s stock up over 3% on Wednesday, the day of his remarks.
- According to Ackman, he started buying into Domino’s Pizza at around $330 a share. The current price of the stock is around $422. “We didn’t get as much as we would like but we own a little under 6%,” he said.
- Ackman has a knack for the restaurant, retail and hotel industries these days as he’s betting on the industries recovering well from their pandemic slumps. At the end of 2020, his top holdings included fast-food chains Restaurant Brands and Chipotle, hotel franchise Hilton, and retailer Lowe’s.
- Ackman’s Pershing Square Capital Management had almost $14bn in assets under management as of April 2020.
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