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Starbucks spikes after hedge-fund billionaire Bill Ackman discloses a stake in the company (SBUX)
Starbucks shares jumped by as much as 5% Tuesday on news that the hedge fund billionaire Bill Ackman added to his stake in the coffee retailer. Pershing Square, Ackman's hedge fund, owns 15.2 million shares of Starbucks worth $900 million.
Starbucks shares jumped by as much as 5% Tuesday on news that the hedge-fund billionaire Bill Ackman had bought a stake in the coffee retailer.
According to CNBC's Leslie Picker, Ackman disclosed the stake while presenting at the Grant's Fall 2018 Conference in New York. He had previously announced a position worth about $800 million, or 10% of his hedge fund's portfolio, in an undisclosed company in August.
Pershing Square, Ackman's hedge fund, owns 15.2 million shares of Starbucks worth $900 million, according to CNBC. The stock has gained 1.5% this year.
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Ackman has also been adding to a stake in United Technologies.
Earlier this year, Ackman ended a five-year battle with Herbalife that he publicly fought against Carl Icahn, another billionaire investor, who was bullish on the company. He also saw big losses on a position he held in Valeant Pharmaceuticals.
Reuters reported in January that Ackman sought to lower his profile and turn around his hedge fund's three straight years of losses.
As an activist investor, Ackman takes big positions in companies and pushes for changes in how they are run.
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