Bill Ackman ‘bullish’ on 2021 but sees volatility in coming months

November 19, 2020 

Billionaire hedge fund investor Bill Ackman said Thursday that he expects to see market gains next year but warned there could be volatility in the months ahead as the coronavirus continues to take its toll.

Ackman told investors that he’s “happy to be long” on equity exposure and is “bullish” on 2021 at a time of low interest rates, more expected stimulus and infrastructure spending.

But he also warned that dark days lie ahead as the United States passed a milestone with 250,000 coronavirus deaths. While he is generally optimistic, the investor said it is “prudent” to insure his portfolio now amid a range of uncertainties that can lead to market volatility.

Ackman put on a new hedge — roughly one third the size of the one he put on earlier this year — as corporate credit spreads are very tight. On a conference call with investors he said he likes the companies he’s invested in now and expects Lowe’s, Starbucks, Hilton Worldwide Holdings and Chipotle to perform well after an end to the pandemic.

Pershing Square Capital Management, Ackman’s $12.5 billion firm, boasts one of the industry’s best records this year with a return of roughly 55 percent. Ackman said it is the 16-year old firm’s best year ever on a gross basis.

He said that he has agreed to hire a woman to his all-male investment team but declined to name her, saying only that she performed extremely well on the tests he gives to candidates and is expected to join late next year.

He also declined to offer any new details about his blank check company Tontine, short of saying that the extensive shareholder list will be an asset in finding a target.

Latest News

November 24, 2020
How to Pretend You’re in Hawaii Tonight

While your travel plans may be on hold, you can pretend you’re somewhere new for the night. Around the World at Home invites you to channel the spirit of a new place each week with recommendations on how to explore the culture, all from the comfort of your home. Beyond the palm trees and mai […]

Read More
November 24, 2020
The Transition Begins

Want to get The Morning by email? Here’s the sign-up. Good morning. The Trump administration has started the transition to Joe Biden’s presidency. ImageCredit...Anna Moneymaker for The New York Times Many Americans have spent weeks, if not months, asking some version of this question: What if President Trump refuses to leave office? The main answer […]

Read More
November 24, 2020
Who Will Miss the Coins When They’re Gone?

They gather unloved in jars and under cushions, unearthed only when laundry needs doing. They rattle in coat pockets, music to some ears and a nuisance to others. They sink into fountains and lurk in wells, a fortune in wishes but a nightmare to sort and count. Coins are everywhere until they’re nowhere, and at […]

Read More
November 24, 2020
Virginia Democrats, Thrilled With Biden Victory, Aren’t Looking for Carbon Copy

ANNANDALE, Va. — Katherine White spent countless hours this year organizing voters to back Joseph R. Biden Jr. for president. One of millions of suburban women who became politically active for the first time after Donald J. Trump’s election in 2016, Ms. White is among the coterie of Biden voters processing his victory by thinking […]

Read More
November 24, 2020
Virginia Democrats, Thrilled With Biden Victory, Aren't Looking for Carbon Copy

ANNANDALE, Va. -- Katherine White spent countless hours this year organizing voters to back Joseph R. Biden Jr. for president. One of millions of suburban women who became politically active for the first time after Donald J. Trump's election in 2016, Ms. White is among the coterie of Biden voters processing his victory by thinking […]

Read More
November 24, 2020
How to Game Black Friday Travel Deals During a Pandemic

Normally, the 14-room Tierra Magnifica resort in Nosara, Costa Rica, doesn't participate in Black Friday sales as it never had trouble filling its few rooms. But this year is different. While Christmas and New Year's bookings are strong, periods before and after are weak, inspiring the 25-percent-off sale on Nov. 27 through Dec. 6, with […]

Read More
crossmenuchevron-down