Bill Ackman's Presentation on Family Dollar (FDO) ~ market folly

Tuesday, June 14, 2011

Bill Ackman's Presentation on Family Dollar (FDO)

At the recent Ira Sohn Conference, Pershing Square Capital's Bill Ackman presented Family Dollar (FDO) as his investment idea under the notion that it is a prime target for a leveraged buyout (LBO).

While we've presented notes from the hedge fund conference, today we present Ackman's actual presentation (powerpoint slides) from the event.

His presentation highlighted that the dollar store chain is like Walmart (WMT), but with more room to grow. Ackman points to the company's return on capital as attractive.

The hedge fund manager believes that FDO can benefit operationally by being taken private, citing KKR's past acquisition of Dollar General (DG) as a successful LBO in the space.

Since the presentation on May 25th, Ackman has doubled his position in FDO and now owns 8.9% of the company. Embedded below is the full presentation Ackman gave on why Family Dollar (FDO) is a compelling investment:

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