'Little Buffett' Bill Ackman Declares "Stop Short Selling"

William Ackman

[Asia Economy Reporter Cho Hyun-ui] Bill Ackman, a leading activist investor on Wall Street, has announced the cessation of short selling.

On the 29th (local time), Ackman declared in his annual letter to shareholders that he would "become a shareholder with less influence who can cooperate behind the scenes with companies instead of engaging in aggressive activism such as pressuring management," effectively announcing his "complete retirement" from short selling, according to CNBC and others.

Known as the "Little Buffett," he is famous for strategies that actively bet on declines such as short selling to maximize profits. He generated huge profits during the 2008 financial crisis and the 2020 COVID-19 market crash.

In particular, he made a name for himself by acquiring companies facing management difficulties, then increasing corporate value through management changes before selling the stocks. A representative example is when he became the largest shareholder of the U.S. department store JC Penney in 2011 and recruited Ron Johnson, the successful figure behind Apple Store, as CEO.

On this day, Ackman announced that Pershing Square would turn its focus to long-term investment as it enters its 19th anniversary. He named the quiet and long-term investment approach as "Pershing Square 3.0," stating, "We expect companies to increase profits over the long term regardless of the various challenges they face in the short, medium, and long term."

This effectively formalizes Pershing Square's shift in investment direction. Since early this year, Ackman has prepared for this transition by purchasing over 3 million shares of Netflix, becoming one of its top 20 shareholders, and securing stakes in Canadian Pacific Railway, a railroad management company, among other long-term investments.

CNBC analyzed that "this decision comes after Pershing Square suffered huge losses following a five-year dispute with health supplement company Herbalife." In 2012, Ackman shorted Herbalife, calling it a pyramid scheme, but Carl Icahn, known as a "corporate raider," bought large amounts of the stock and drove up the price, causing Ackman to lose hundreds of millions of dollars.

This content was produced with the assistance of AI translation services.