Pershing Square checks Hilton in with a new stake


(Reuters) – Multi-billion dollar investor William Ackman has taken a stake in hotel operator Hilton Worldwide Holdings for the second time in two years after gaining 32 percent in 2017.

FILE PHOTO: William Ackman, founder and CEO of Hedge Funds Pershing Square Capital Management, speaks during the Son Investment Conference in New York on May 4, 2015. REUTERS / Brendan McDermid / File Photo

Ackmans Hedge Fund Pershing Square Capital Management holds 10.9 million shares or 3.7 percent of the company, according to a submission made on Thursday.

Hilton's share price hit a one-year low on Thursday amid concerns over a slowdown in the hotel industry due to international trade concerns.

Pershing Square, which invests $ 8.4 billion, said the 10.9 million Hilton shares represented approximately 13.9 percent of the net asset value of Pershing Square Holdings (PSH.AS), the company's publicly traded hedge fund. Hilton has a market capitalization of $ 19 billion.

Ackman, one of the industry's most watched activists, originally bought Hilton shares in 2016 and left the position in 2017, he told investors last year. The size of this position was never disclosed, but one source familiar with the matter said it was smaller than the current position.

Ackman tends to invest in companies where he can bring about change, but last year's Hilton bet was a passive investment for Pershing Square

He did not say anything about his plans for Hilton this time, only saying investors would learn more next month if he holds an investor call.

Earlier this month, Pershing Square announced a $ 900 million position with Starbucks after holding positions in Nike (NKE.N), United Technologies Corp (UTX.N) and Lowe's Companies Inc earlier this year . (LOW.N) had announced.

Ackman is a handful of activist investors who delivered top returns this year, with earnings up double digits before selling this market. Since January, its exchange-traded hedge fund has gained about 6 percent by Tuesday.

Reporting by Svea Herbst-Bayliss in New York, Bhargav Acharya in Bengaluru and Dasha Afanasieva in London; Editing by David Goodman and Dan Grebler

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