Ackman’s Pershing Square Fund Posts 7.9% Gain

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Nov. 4 (Bloomberg) -- On today's "The Roundup," Adam Johnson, Matt Miller, Julie Hyman and Olivia Sterns wrap up the day’s top market stories on Bloomberg Television's "Street Smart." Cantor Fitzgerald's Peter Cecchini also comments. (Source: Bloomberg)

Good question.

Time for the roundup, stories we are tracking ahead of tomorrow's open.

Just call him the comeback kid.

After a bruising year on herbalife and jcpenney, bill ackman got some good news that he could use these days.

His firm posted a 7.9% net gain in their main strategy in october according to a performance update obtained by bloomberg, bringing the year to date gain of pershing square international to 8.1%. one of his standout investments?

Canadian pacific.

Up near 16%. why should he like it, right?

You are going to pay the guy two percent of the assets under management plus 20%? to make one third what you could have made?

Not compared to where he was with the jcpenney debacle.

What is interesting is that his long has done well, but the short positions have been really challenging.

7.9% in october, 8.1% for the whole year.

He has done well in one month out of 10? great.

And he got out of jcpenney, right?

Wax half of a billion dollars on jcpenney, but you mentioned canadian pacific, of all the things that did well for him, they were up 16%. he trimmed his stake in canadian pacific and in general growth.

It is frustrating if you are an investor and you are like -- come on.

Way ahead of where you were.

We do not mean to pick on bill ackman, look, he is a smart guy, but it is a hard business.

Best looking gray hair in the industry, i would say.

The man has good hair.

If he was at men's wearhouse, i would buy.

Not now.

Johnson & johnson to pay $2 million to settle an investigation into its marketing practices area they will plead guilty to a criminal charge for ms.

Branding its antipsychotic drug not approved by the fda.

They will also settle on charges that they paid kickbacks.

Essentially the allegation is that the drug was approved by the fda -- fda to treat schizophrenia.

They say that they were trying to get people to use it for mood disorders and dementia.

Which is not unusual, by the way.

Doctors do that with a lot of other drugs.

A lot of times if a drugmaker develops something for one malady and it does not work?

They look around for another malady.

And they look for indications of approval.

Here the doctors are allowed to try for something else, the differences they were trying to push it for something it was not cleared for.

You have to wonder if this kind of fine is going to be a deterrent.

The government is going after banks, sac, johnson & johnson, is it really going to be at current?

They will be making $49 billion in net income this year.

C is still going to be a super billionaire after paying a measly $2 billion.

But it may not be over yet.

What about bill gross?

Is he getting find?

No, but he is a billionaire.

He is just trying to get you to move on.

He may have to relinquish his throne.

Bill gross no longer runs the world's largest mutual fund.

Pimco has been beaten out by the vanguard stock market return fund.

The bill gross fund shrunk by $38 million since the start of the year as investors pulled money out of traditional fixed income funds after anticipation that the 30 year bull market in bonds is coming to an end.

Like i think it will be hard for fixed income.

They have had a darn good run . why did they raise all that money in 2008? everyone was fleeing stocks into the perceived safety of the bond market.

The question is, is this all part of the great rotation out of bonds?

They did say that there was redemption of $117 billion in september, where stock funds added about $35 billion, so there is some rotation, although it is not complete, but part of that money is going into stocks.

Which is why i would imagine in part the pimco started out as a stock fund.

Alternative assets as well, we can do a little bit of everything, but the theme is not to give up hope.

Bonds, maturities, yields, there are lots of different ways.

Is he in the stock fund?

Neil catch kari is there running the stock fund.

But yes, he originally joined to run stocks for them.

A great guy running bonds.


It is.

Lexmark to stewart may have found her man.

We are talking about the one that might take her company to the next level.

Daniel dyce has been tapped to be the new ceo for martha stewart media.

The executive has a history of dealmaking, previously leading companies that were sold both to private equity and strategic buyers.

His path to speculation was that he would take a similar path with the magazine and home decor company, which has lost $1.7 billion in market value since 2005. it was time.

Can i cut in and say that his name is deanst.

It is the german word for in- service, i curious sign.

Flex you also pronounce volkswagen as -- you also pronounce volkswagen as wolks wagon.

[laughter] it is fascinating, you have a couple of shareholders they're breaking out into different realms.

Royce and associates, saying you know what -- the shareholder -- the share price is so bad, it would be a good time to take the company private.

Then you have david idol men, the sixth-largest shareholder, who says that they should really explore the sale of the company.

The only way that it have value -- she had her time, did her thing, now you need to sell.

At gamco they are saying it is too cheap, please do not sell it . these guys have been talking about interesting potential buyers.

Imagine what a tv network owning the martha stewart brand could do.

I think she works closely with them already at hsn.

Mindy grossman, that would be curious.

Could we get a finders fee if we call mindy?

What is it about the brand of martha, though?

She owns all the shares, she would definitely have control over certain decisions that would come down.

If something happens to her, where does the company go?

All we want is for her to show us what the thanksgiving centerpiece should look like and how to make it out of 12 pinecones.

You could always go to her competitor.

That is your close, everyone, we have your first trade for tomorrow next, on "street smart

This text has been automatically generated. It may not be 100% accurate.


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