William Albert Ackman Curated
Investor and Hedge Fund Manager
CURATED BY :
Bill Ackman's Investment Philosophy and Strategy
Bill Ackman on his Portfolio
Ackman's view: Hilton could go to zero
“Hilton is the canary in the coal mine,” said Ackman of the hotelier, which is one of his larger holdings. Without quicker action, “it’s going to zero along with every other hotel company,” he predicted. Though, he did say his Pershing Square was buying shares of Hilton as markets plunged on Wednesday morning. Ackman predicted that hotel stocks including Hilton could “go to zero” soon if no action is taken. He is a major shareholder in Hilton. “Every hotel is going to be shut down in the country. ... If we allow this to continue the way we have allowed it to continue, every hotel company in the world is done. No business can survive a period of 18 months without revenue,” Ackman said. Shares of Hilton have tanked nearly 50% in March alone, while Marriott plunged 60% this month amid the market turmoil. The S&P 500 tumbled into a bear market last week and the sell-off accelerated on Wall Street as investors feared the coronavirus will tip the economy into a recession. The benchmark was last 29.5% off its record high. Still, Ackman said he grew optimistic that world leaders including Trump will move immediately to save the global economy. “I’ve been aggressively buying stocks including Hilton today. And I’ve been buying all the way down — Hilton, Restaurant Brands, and Starbucks,” Ackman said.
Bill Ackman panicked about the coronavirus early on.
He began arranging for his firm’s fifty employees to abandon their midtown Manhattan offices. He put on doomsday hedges. And then he pulled an enormous amount of cash from an ATM. By the time the Dow Jones Industrial Average was plunging seemingly a thousand points a day, Ackman’s $5.6 billion firms was making money amid the chaos. So when he woke on Wednesday morning, Ackman didn’t have a pleasant message for America. He took to Twitter to recommend the shutdown of the country. Ackman recommended President Trump effectively close the country for 30 days and shut the borders to stop the spread of the coronavirus. Yes, it would mean an economic disaster, so Ackman recommended that Trump call a national ‘Spring Break’ and have the government pay wages, halt foreclosures, and help with other monthly bills like rent to tide people over. Then he called into CNBC around noontime to elaborate. And it was bad. “Hell is coming,” said Ackman, in a frenzied 28-minute interview. “Shut it down now,” he said of the economy, “There is a tsunami coming.”