The fund’s philosophy is devoted to fundamental analysis with a value-oriented approach, and sometimes activist investing as well.Ackman, with his expertise managed to turn his initial million investment into over billion.Prior to co-founding Gotham Partners LP in 1992, Ackman worked for his father at Ackman Brothers & Singer Inc., a real estate business, where he was responsible for arranging and structuring equity and debt financing for real estate investors and developers.
What he does is gain a substantial stake in troubled companies by investing enough to help them recover, and quickly leaves after squeezing one-time gains out of the company.
His investment philosophy is rather complex, something which cannot be categorized easily into any existing types of investors.
Ironically, Ackman began his career in the real estate sector, which ultimately was the sector responsible for the downfall of Gotham and forced Ackman to liquidate the fund due to bad debts in 2003.
However, Ackman soon re-entered the hedge fund business, creating Pershing Square Capital, a concentrated, long-short value hedge fund, the same year.
During that period, Ackman shorted some of the major players of the subprime industry which included Freddie Mac, Fannie Mae, MBIA and Ambac, which ended up a major win of billions of dollars.
The Wall Street Journal, the SEC, The New York Times and others declared his claims as being fraudulent.He publicly apologized to his clients of Pershing Square Capital.Ackman was one of the very few people who predicted the financial crisis which hit the globe in 2008.Despite his few investment missteps, he was one of the prominent hedge-fund managers who successfully benefited from the financial clash in 2008, while many funds were forced into liquidation.There is another reason for the detested comparison with Icahn; which is the fact that Ackman invests in the bluest of the blue-chip companies.We are proud to be an active partner, leveraging our expertise and relationships to provide substantial value to our portfolio companies.