Proctor & Gamble Gets Boost From Ackman

July 15, 2012 James Heinsman In the News

Bill Ackman

The price of Proctor & Gamble’s stock climbed 3.4 percent on word that Bill Ackman, known as an activist hedge fund investor, was given approval from the feds to purchase a large portion of the stalled company.

P&G is the world’s largest consumer products company, but its stock has been going nowhere and its sales are nothing to write home about. Competitors are doing better than P&G.

Pershing Square Capital Management, Ackman’s hedge fund, is known for its practice of purchasing large percentages in stable companies whose stocks are not performing well. Ackman also puts the pressure on the companies to take the necessary steps to improve shareholder return.

“What this means is change is coming one way or another,” said Matt McCormick, a portfolio manager with Bahl & Gaynor. “Ackman has a history of identifying companies with good, strong brands but that need a jolt –and he’s very effective.”

Bill Ackman, Hedge Funds, Pershing Square Capital Management, Proctor & Gamble,

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