What We're Reading ~ 10/22/15

10 poor investment theses [Irrelevant Investor]

The case against short selling [Long Short Trader]

The five "why's" in problem solving [Wallbuilder]

The danger of 1-year performance numbers [A Wealth of Common Sense]

Latest post from the Valeant (VRX) bear camp [Bronte Capital]

How bad will it get for American Express? [Bloomberg]

China is not collapsing [Project Syndicate]

Kingmakers of China's internet: Baidu, Alibaba and Tencent [WSJ]

A look at wireless tower stocks [Barrons]

Tribune Media shares at a 50% discount [Barrons]

Fossil Group (FOSL): a value stock with temporary problems? [Value & Opportunity]

Netflix is creating a cordless nightmare for traditional media [Institutional Investor]

Light beer gets in touch with serious side [WSJ]

Auto parts retailers' immunity to Amazon drives stock surge [Bloomberg]

Why investors don't fund dating [Andrew Chen]

Robots and us [MIT]

Notes From Lee Ainslie's Talk at Citi Australia Conference

Maverick Capital's founder Lee Ainslie recently presented at the Citi Conference in Australia and below are some notes from the event.

Notes From Lee Ainslie's Talk at Citi Australia Conference 2015

Founded Maverick in 1993
Ex Tiger Cub
Engineering degree
$10bn FUM
Typically 100 positions, 37 investment staff
2/3 of capital is from the profits they have made
Med and Large cap, 75% gross in US
The hedge fund targets 135% long 90% short
Focusses on stock specific risk and portfolio risk
Don't think looking at net long, gross, volatility, beta etc is that useful for them. They used to do that, but it changed 4 yrs ago as it doesn't adequately look at the risk
Constantly stress test portfolio - how would it have performed in 08 or other crises?
Invest in stocks that perform well in bad markets
Very atuned to what their peers are doing so they don’t get caught up in HF loved stocks (MF note: Their Q2 13F as of June 30th shows they held positions in some hedge fund hotels such as VRX (though they were reducing the stake), AGN, CHTR, PCLN, LBTYK, FLT, TDG and a few others ~ but obviously their portfolio might have changed since then)

Focus on 3 factors: Stock dispersion,  intra stock correlation, equity volatility 

Volatility has been subdued for a while now but sudden spike last 2 months
BUT even with spike still below LT avg, can go much higher
Went 49yrs never hit that level from 1939-1988?
10 yrs 1988 - 98
4yrs 98-02
6yrs 02-06
Volatility spikes are becoming more frequent which is good for HF's 

Volatility of other asset classes running above LT avg - 10yr trading 199% of LT avg vol. Oil 126%
Dispersion of stock prices has been very low for 5yr period.. not good for HF's
When dispersion is high HFs outperform 

Stock correlation is very high - meaning stocks reacting more to macro than fundamental
Lower correlations equal better returns
Country policy convergence is widening which is good for HFs.. eg China vs Europe vs US
First time Eu and Fed have had conflicting policy = lower correlation 

They see these headwinds as becoming tailwinds - i.e. vol will go up, dispersion will increase, stock correlation will reduce.
HF's have been poor performers in recent times, but that could change as environment will help them 

HFs reduce gross in high vol but they are such a large % of mkt they all take off gross at same time and hence large moves 

Thinks the 3 key things that happened in fin crisis 
1. Short bans
2. Worries about PB's not having stock available
3. Survival of financial institutions called into question 

All 3 unlikely to happen again in next crisis  

HFs are currently very defensive... good contrarian indicator
Stocks always over-react on down side so need to be in a position to buy the crisis sell offs
Risky stocks sell off first.. avoid them   

Question & Answer Session  

Where has his performance come from?  

In early may net and gross was on their LT avgs
Indicator of changing risk was peaking which set off alarm bells
HFs had high exposure to stocks which don’t perform well in down mkts, so they pulled back risk
Stuck to stocks which outperform in down mkts
Looked at which stocks did well in crisis
Always debate merits of individual positions weekly - 3hr meeting
Also have a top down meeting once a week with chief PMs on where their risks are
Returning money when don't see opportunities builds confidence within investor base.. don't want to be too large and damage performance if you can’t use it. Wont be better off in the long run 

Thoughts on China? 

Cautious view, worse than ppl think. More than half of every listed company delisted themselves(?) The damage to investor confidence in that scenario is bad. Too many rules, scares investors, people dont want to put their money in as risk it gets locked up. Less tools for them now to be reponsive and hence why the devaluing is continuing. They are neutrally postured. Have equal amount long and short in terms of revenue from China. No active bets 

Has he found Australia good for alpha? Best idea here? 

No exposure currently due to Superannuation - so much capital trapped domestically so valuations are too high on global standards. Not short though as doesn't think that is a bubble that will burst soon. (For those unfamiliar: Superannuation is an Australian pension system where employers take 9% of gross wage and it goes into a regulated pension saving on behalf of the employee.  Most of it typically goes into Australian listed shares and property, so for that reason these assets are often overvalued when looking at global multiples so it's harder for offshore funds to invest as they have to pay up.)  

View on liquidity? 

On fixed income side scares him to death. The day Gross left Pimco he tried to make a few changes and it moved treasury markets big time. The % Maverick trade electronically has sky rocketed  

View on ETFs? 

ETFs can be big problem for investors but doesn't worry about them as much as most. Can create dynamics that are not good in the short term but can create opportunities. Some don’t work as advertised under periods of stress. Possibly an opportunity when it happens 

Fed rates? 

Surprised they didn't raise in Sept - unless data weakens will be very surprised if they dont raise in the 1st 6 months next yr. Holds consensus view 

Portfolio weighting US vs Asia? 

Portfolio very heavily weighted to US vs Asia - always been there, better relationships with mgmt etc. Quality of companies very high in US. 3/4 of port is in US which is LT avg (that is % of gross)


For more on this manager, we've posted up some of Maverick Capital's recent activity.

Pennant Capital Reduces Universal Stainless & Alloy Stake

Alan Fournier's hedge fund firm Pennant Capital has filed an amended 13G with the SEC regarding its position in Universal Stainless & Alloy (USAP).  Pennant now owns 9.9% of the company with 703,219 shares. 

This is down from the 1.14 million USAP shares they owned at the end of the second quarter.  The filing was made due to activity on October 21st.

As we've highlighted previously, Pennant has been slowly trimming its USAP stake for a while now and shares are down around 56% over the past six months.

Per Google Finance, Universal Stainless & Alloy "manufactures and markets semi-finished and finished specialty steel products, including stainless steel, nickel alloys, tool steel and certain other alloyed steels. The Company's manufacturing process involves melting, remelting, heat treating, hot and cold rolling, forging, machining and cold drawing of semi-finished and finished specialty steels. The Company's products are sold to service centers, forgers, rerollers, original equipment manufacturers (OEMs) and wire redrawers. The Company also performs conversion services on materials supplied by customers. The Company's products are manufactured in a range of grades and melt qualities, including argon oxygen decarburization (AOD), electro-slag remelted (ESR), vacuum induction melting (VIM) and vacuum-arc remelted (VAR)."

Invest For Kids Chicago Conference 2015 ~ Discount For Readers

The seventh annual Invest For Kids Chicago Conference is coming up in a few weeks and space is limited.  The event features prominent hedge fund managers sharing investment ideas to benefit underprivileged children in Chicago.

Discount For Our Readers

Readers receive $100 off the price of a Professional Ticket using discount code MARKETFOLLY (it's case sensitive.)  This discount expires November 2nd.  Click here to register.

Event Details

When: November 4th, 1:30-5:30 PM
Where: Harris Theater, Chicago

Speakers List

John Burbank, Passport Capital
Ricky Sandler, Eminence Capital
Steve Tananbaum, GoldenTree Asset Management
Sam Zell, Equity Group Investments
Andy Hall, Astenbeck Capital
James Flynn, Deerfield Capital
N. David Samra, Artisan Partners
Barry Sternlicht, Starwood Capital Group
Soren Aandahl, Glaucus Research
Rupal Bhansali, Ariel Investments
Jonathan Litt, Land and Buildings Investment Management
Michael Sacks, GCM Grosvenor
Emerging Managers: Andy Greenberg, Saker Management & David Heller, Cloud Gate Capital

You can learn more about the event and buy tickets at www.investforkidschicago.org

Lee Cooperman's 7 Reasons For Market Upside

Omega Advisors founder Lee Cooperman recently appeared on Bloomberg TV and outlined seven reasons for market upside.  Here's his rationale:

1. This would be the first market peak that occurred without one Fed tightening.  He says on average, the market went up for 2.5 years after the first rate hike.

2. Bear markets come due to recession, overvaluation, hostile Fed, or a geopolitical event.  Those don't really seem to be present, with the caveat of the last one.

3. Markets usually peak during euphoria and he doesn't see any signs of that.

4. The stock market has already corrected recently.

5. What's the alternative to stocks... bonds yielding 2% or cash earning zero?

6. There's enormous substitution taking place of debt for equity.  Corporations are announcing big buybacks and that supports the market.

7. Valuation is reasonable

Embedded below is the video of Cooperman's Bloomberg appearance:



You can view recent portfolio activity from Cooperman here.

Tiger Global Files 13G on Pure Storage

Chase Coleman's hedge fund Tiger Global has filed a 13G with the SEC regarding its position in Pure Storage (PSTG).  Per the filing, Tiger Global now owns 17.9% of the company with over 5.24 million shares (represented by 1 million shares of Class A stock and 4.24 million shares of Class B stock which may be converted into Class A stock at 1:1 ratio at the option of Tiger.)

The filing was required due to activity on October 7th.  The company recently went public, however Tiger Global had already invested in the company when it was still private.  Tiger participated in a $225 million Series F round at a pre-money valuation of over $3 billion back in 2014, per the company's website but was also an investor prior to that round too.

Per Google Finance, Pure Storage is "a United States-based flash enterprise storage array company. The Company enables the deployment of flash in the data center. The Pure Storage FlashArray is ideal for high performance workloads, including server virtualization, desktop virtualization (VDI), database (OLTP, real-time analytics), and cloud computing. Its application includes VMware, Virtual Desktop Infrastructure (VDI), Oracle Database and structured query language (SQL) Server. Its vSphere Web Client plugin enables complete management of storage within VMware: automatically create, expand or shrink datastores, see array-side capacity and performance of each datastore, and understand real storage usage through deduplication."

Hedge Fund Links ~ 10/16/15

Thoughts on hedge funds [A Wealth of Common Sense]

A profile of Al Gore's Generation Investment Management [The Atlantic]

Inside Steve Cohen's Point 72 academy program [Business Insider]

Why people invest in hedge funds [A Wealth of Common Sense]

Big name hedge funds hit by performance woes [Bloomberg]

A September to forget for many managers [ii alpha]

Fortress plans to close flagship macro fund [WSJ]

Renaissance Technologies to shut down small fund [Reuters]

The Stanford endowment experiment [ai cio]

Hedge funds hit by fall in management fees [EuroMoney]

Six funds fined by SEC on short selling rule violations [ii alpha]

Stockpickers fail to shine in downturn [FT]

Cargill to wind down hedge fund arm [FT]

CFA, MBA, CAIA, PhD or Masters: what do hedge funds want? [eFinancial Careers]

ION's Short Altice Presentation From Sohn Conference Tel Aviv

The Sohn Conference in Tel Aviv just took place and at it Stephen Levey and Jonathan Half's ION Asset Management laid out their case for shorting Altice.

We thought it'd be relevant to highlight given that numerous hedge funds had been involved on the long side in either Numericable/Altice or both over the past year in varying capacities.

The crux of ION's thesis is that Altice has overpaid for assets and its margin targets are skeptical.  Patrick Drahi's company recently announced the acquisition of Cablevision (CVC) in the US.

Embedded below is ION's short Altice presentation from the Tel Aviv Sohn Conference:



For more on hedge fund short positions, we've posted up recent short selling activity by hedge funds as well as a recent interview with Jim Chanos.

Meritage Group Increases Axalta Coating Systems Stake

Jim Simons, founder of quant Renaissance Technologies, also has a family investment vehicle called Meritage Group managed by his son Nathaniel.  Meritage has filed a 13G with the SEC regarding its position in Axalta Coating Systems (AXTA).  Per the filing, Meritage now owns 5% of AXTA with over 12 million shares.

This is an increase of over 3.22 million shares in their position size since the end of the second quarter when they owned 8.78 million shares.  The filing was made due to activity on October 2nd.

Warren Buffett's Berkshire Hathaway is also involved in AXTA and bought around $28, slightly below where the stock is trading now.  Our most recent Hedge Fund Wisdom newsletter highlighted the thesis on AXTA if you want to catch up quickly on the name.

Carlson Capital Ups Vitamin Shoppe Position

Clint Carlson's hedge fund firm Carlson Capital has filed an amended 13D with the SEC regarding its position in Vitamin Shoppe (VSI).  Per the filing, Carlson now owns 6.94% of the company with over 2 million shares.

This is an increase from the 1.86 million shares they owned at the end of the second quarter.  The filing shows they were out buying in late July, sporadically throughout August and September, and most recently on the first two days in October at $31.70-$32.48.

Their 13D also notes they intend to continue to have discussions with management and the board about reducing the company's expenses, altering the company's capital allocation and buyback policies and the composition of the board.

Per Google Finance, Vitamin Shoppe is "a multi-channel specialty retailer and contract manufacturer of vitamins, minerals, herbs, specialty supplements, sports nutrition and other health and wellness products (VMS). The Company operates through three segments: retail, which includes Vitamin Shoppe, Super Supplements and Vitapath retail store formats; direct, which consists of its e-commerce and catalog formats, and manufacturing, which consists of the Nutri-Force manufacturing operations. The Company operates through its wholly owned subsidiary, Vitamin Shoppe Industries Inc. and Vitamin Shoppe Industries Inc.s' wholly owned subsidiaries, VS Direct Inc., Vitamin Shoppe Mariner, Inc. (VSM), VS Hercules LLC (VSH), Vitamin Shoppe Global, Inc. (VSG) and Vitapath Canada Limited (VCL)."

What We're Reading ~ 10/14/15

The psychology of risk and reward [Farnam Street]

The (non) velocity of money [Reformed Broker]

The CFA vs MBA decision [A Wealth of Common Sense]

Latest market commentary from Byron Wien [Blackstone]

The king of online gambling [Forbes]

Thoughts on Fastenal (FAST) [Base Hit Investing]

A look at Air Products & Chemicals (APD) [Bear of Burrard Street]

Stock picks from Marty Whitman's successor [Barrons]

Why interest rates could stay lower for longer than previously thought [Market Anthropology]

The social network illusion that tricks your mind [Technology Review]

Venture capital and the internet's impact [Stratechery]

Move over Louis Vuitton, here's LFX [Bloomberg]

Secrets to building a mighty network [Backchannel]

The Collected Wisdom of Seth Klarman ~ Compilation By Santangel's Review

Santangel's Review has recently compiled an excellent resource on Baupost Group's Seth Klarman.  They've gone through and compiled quotes from letters, articles, interviews, transcripts and more to highlight Klarman's views on various investing topics.

Given that Klarman is considered one of the best investors of our time, this is certainly well worth your time.

Embedded below is The Collected Wisdom of Seth Klarman:



You can download a copy here.

Thanks to Santangel's Review for compiling such an excellent resource.

New Graham & Doddsville Issue: Interviews With Alex Sacerdote & Ed Bosek

Columbia Business School's investment newsletter Graham & Doddsville is out with its latest edition.  It features interviews with Whale Rock Capital's Alex Sacerdote, BeaconLight Capital's Ed Bosek, Jane Siebels of Siebels Asset Management, as well as the gentlemen from Global Endowment Management.

Sacerdote talks about his focus on the technology sector and the 'S curve' of inflection points that is so critical to his process of finding successful tech investments.  He also lays out his thesis on Amazon (AMZN) and NetEase (NTES),

Bosek previously worked at Atticus Capital, a fund we highlighted on the site numerous times before it eventually closed. He talked about how deregulation and demutualization are big drivers of his idea generation and pitched China Resource Enterprises (SEHK:291) and Daqin Railway (SHSE:601006).

The issue also features two student pitches: a long of Tenneco (TEN) and a merger arbitrage/special situation pair of long RNF / short UAN.

Embedded below is the latest issue of Graham & Doddsville:



Be sure to also check out the previous issue of Graham & Doddsville.

Viking Global Starts Laboratory Corp Stake

Andreas Halvorsen's hedge fund firm Viking Global has filed a 13G with the SEC regarding shares of Laboratory Corp (LH).  Per the filing, Viking now owns 5.3% of LabCorp with over 5.39 million shares.

This is a newly disclosed stake for the firm and the filing was made due to activity on October 1st.

We also posted up other recent portfolio activity from Viking Global here.

Per Google Finance, LabCorp is "an independent clinical laboratory company in the United States. Through a national network of laboratories, the Company offers a range of clinical laboratory tests that are used by the medical profession in core testing, patient diagnosis, and in the monitoring and treatment of disease. The Company manages its operations through two segments: the Clinical diagnostics laboratory segment, which includes core testing, as well as genomic and esoteric testing; and the Other segment, which consists of the Company's non-United States clinical diagnostic laboratory operations in Ontario, Canada. It also provides specialty testing services in the areas of allergy, clinical trials, diagnostic genetics, women's health, cardiovascular disease, identity, forensics, infectious disease, endocrinology, oncology, coagulation, occupational testing and pain management."

Robin Hood Investors Conference 2015: Discount For Our Readers

Robin Hood invites you to the Third Annual Investors Conference.

Join us in New York City on November 16-17 for the 3rd Annual Robin Hood Investors Conference presented by J.P. Morgan and hosted by Hyatt.

Over the past two years, the Robin Hood Investors Conference has brought together the most influential policy experts, hedge fund managers, financial leaders, tech innovators, and real estate investors to share market insights and provide actionable, money-making ideas.  Their stock picks have collectively outpaced the S&P 2:1.


2015 Robin Hood Speakers List

Paul Tudor Jones, Tudor Investment Corp
John Griffin, Blue Ridge Capital
Dan Loeb, Third Point
Philippe Laffont, Coatue Management
Bill Ackman, Pershing Square
David Einhorn, Greenlight Capital
T. Boone Pickens, BP Capital
Larry Robbins, Glenview Capital
Anthony Bozza, Lakewood Capital
Jamie Dimon, J.P. Morgan
Mike Cagney, SoFi
Mary Erdoes, J.P. Morgan Asset Management
Barry Sternlicht, Starwood Capital Group
Whitney Tilson, Kase Capital
Tim Ferriss, Angel Investor/Author
Roland Fryer, Harvard University
Dave Giroud, UpStart
Sam Hodges, Funding Circle


Discount For Our Readers

As in years' past, the conference will sell out so we urge you to click here to purchase tickets now as seats are limited.

Discount: Use code "market folly 15" to get 10% off your total ticket price.

As with all things Robin Hood, 100% of ticket sales go to helping our New York City neighbors living in poverty build better lives for themselves and their families.  We hope you will join us for this exciting event.
 



For more information and to register, head to Robin Hood's website.

Sohn Conference San Francisco: Excellence In Investing For Children's Causes

The 6th annual Sohn Conference San Francisco is coming up in two weeks.  It brings together some of the world's top investors to share their ideas in order to benefit the Excellence in Investing for Children's Causes Foundation.


Conference Details

When: Tuesday, October 27th, 2015 (Registration at 10 a.m.)
Where: Hyatt Regency San Francisco
Website: https://www.excellencesf.org


Sohn San Francisco Speakers List

Jeffrey Ubben, ValueAct Capital
Mick McGuire, Marcato
J. Kyle Bass, Hayman Capital
Kurt Billick, Bocage Capital
Gil Simon, Apex Capital
William Duhamel, Route One Investment Company
Mike Wilkins, Kingsford Capital
Malcolm Fairbairn, Ascend Capital
Carl Kawaja, Capital World Investors
Marc Schneidman, Aquilo Capital
Christopher Chabris, author of The Invisible Gorilla


Next Wave Sohn Speakers 

New this year, the event also features a 'Next Wave Sohn' event, held at 10:30 a.m. before the main conference.  It features emerging managers sharing their best ideas.  Speakers include:

David Brown, Hawk Ridge Management
Jonathan Goldberg, BBL Commodities
Steven Landry, Eastbay Asset Management
Richard Merage, MIG Capital
Moderator: George Fox, Titan Advisors



Event Flyer & Registration

You can register for the event by clicking here or you can call 415-728-4455

It should be a fantastic day full of investment ideas and also includes a buffet lunch and cocktail reception afterwards.

Remember, conference proceeds support Bay Area organizations focused on improving educational opportunities and life outcomes for underserved youth.  A portion of the proceeds also benefit their partner, The Sohn Conference Foundation to treat and cure pediatric cancer and childhood diseases.

For more information, head to https://www.excellencesf.org

 

Jim Chanos Interview: Glencore, Tesla, Volkswagen & More

Short seller Jim Chanos of Kynikos Associates appeared on Bloomberg TV and talked about some of his latest short positions.  Here are some of the highlights:

On Glencore:  "We're not going to comment on our position on Glencore. But I will say is we know the company pretty well.  Let's just say I'm a potential purchaser ... to close out a short you have to buy stock."

On Volkswagen:  "No, we don't want to be short.  If anything I think we'd be looking at Volkswagen on the long side. But we have not invested in Volkswagen.  I think they'll survive"

On Tesla:  "We haven't disclosed our position officially in Tesla. Let's just say I'm not very positive on the company and we'll leave it at that."

He also ended by saying his favorite short right now is US E&P companies.

Embedded below are the videos of Chanos' appearance on Bloomberg TV:

Video 1


Video 2


Video 3


Video 4


Video 5



We've also posted up Chanos' thoughts on some of his other shorts as well.

Baupost Group Discloses Orexigen Therapeutics Stake

Seth Klarman's investment firm Baupost Group has filed a 13G with the SEC regarding shares of Orexigen Therapeutics (OREX).  Per the filing, Baupost now owns 17.17% of the company with over 25.82 million shares.

This is a newly disclosed equity stake for the firm as they did not show one at the end of the second quarter.  The filing was made due to activity on September 30th.

Shares of OREX are down over 69% over the past six months, so this certainly fits Baupost's preference to buy beaten down names.

You can view other portfolio activity from Baupost Group here.

Per Google Finance, Orexigen Therapeutics is "a biopharmaceutical company. The Company is focused on the development of pharmaceutical product candidates for the treatment of obesity. The Company's product is Contrave, a fixed dose combination of bupropion hydrochloride (HCl) extended release (ER) and naltrexone HCl ER. The Company's product Contrave, is approved in the United States by the United States Food and Drug Administration (FDA) as an adjunct to a reduced-calorie diet and increased physical activity for chronic weight management in adults with an initial body mass index (BMI), of around 30 kilograms per square meter (kg/m2) or greater (obese), or around 27 kilograms per square meter or greater (overweight) in the presence of at least one weight-related comorbid condition. The Company also submitted an application for marketing authorization with the European Medicines Agency (EMA) for Contrave under the name Mysimba.."

What We're Reading ~ 10/7/15

Superforecasting: The Art and Science of Prediction [Philip Tetlock & Dan Gardner]

Fat tails, thin ice [Jason Zweig]

Are you prepared for the next bear market? [Fortune]

Most CFOs think the US market is overvalued [Alpha Architect]

Putting a price tag on the Volkswagen scandal [Aswath Damodaran]

A pitch on beaten down Sun Edison [Bronte Capital]

Case study on capital allocation and Rockwood Holdings [Before Losing My Sanity]

Do as they do: a guide to insider activity [Dead Companies Walking]

A look at Cable One [Punch Card Blog]

Some stock picks from François Rochon [Montreal Gazette]

How the Bloomberg terminal made history and stays relevant [FastCompany]

Sneaker wars: inside the battle between Nike and Adidas [GQ]

The decline of 'big soda' [NYTimes]

China's middle class dreams in peril [WSJ]

Can Comscore/Rentrak go toe-to-toe with Nielsen? [Variety]

Google Fiber's real innovation [Beyond Devices]

Why we fall for bogus research [Bloomberg View]

Alcoa and the painful business of making aluminum [Reuters]

The frustrating life of a McDonald's franchisee [Bloomberg]

Bill Ackman's Talk at Bloomberg Markets Most Influential Summit

Pershing Square's Bill Ackman sat down with Stephanie Ruhle for an interview at Bloomberg Markets Most Influential Summit yesterday.

It's around a 30-minute talk but here's the broad takeaways from the interview:

- Still owns Valeant Pharmaceuticals (VRX), but hasn't added to the position or sold any shares

- Looked at General Electric (GE) but passed because it wasn't cheap enough; thinks Nelson Peltz will do well with it

- More to come with his Herbalife (HLF) saga

- Notes Burger King (part of Restaurant Brands (QSR)) has cut costs, improved stores/experience and same store sales are doing well

- Thinks Bloomberg should run for President

Embedded below is the video of Ackman's Bloomberg talk:



For more from this manager, head to Pershing Square's semi-annual report.