Bill Ackman
, the activist investor of Pershing Square currently involved in
a turnaround strategy at J.C. Penney, has a concentrated
portfolio of nine stocks. In the second quarter, he bought one
massive new position: The Procter & Gamble Company (
PG
).
The Procter & Gamble Company (
PG
)
Ackman bought 21,916,208 shares of The Procter & Gamble
Company at an average price of $64 in the second quarter of 2012.
The holding is 17.7% of his portfolio, equating to 0.80% of the
company's shares outstanding, and making it his second largest
position. The stock is up 5% from that share price.
The Procter & Gamble Company manufactures and markets a broad
range of consumer products in many countries throughout the
world. The Procter & Gamble Company has a market cap of
$182.97 billion; its shares were traded at around $66.98 with a
P/E ratio of 17.2 and P/S ratio of 2.2. The dividend yield of The
Procter & Gamble Company stocks is 3.4%. The Procter &
Gamble Company had an annual average earnings growth of 6.5% over
the past 10 years.
Ackman is planning to push for changes at the company, which he
discussed
on CNBC in July
. "It's very hard to lose money in our opinion at P&G at the
current share price," he said.
Meanwhile, Ackman exited several positions:
Fortune Brands Home & Security (
FBHS
)
Ackman sold out his remaining 13,323,249 shares of Fortune Brands
Home & Security at an average price of $22. He made a
significant profit on the holding which he purchased in the
fourth quarter of 2011 at an average price of $15.
Fortune Brands Home & Security provides home and security
products in the U.S. Fortune Brands Home & Security has a
market cap of $3.58 billion; its shares were traded at around
$24.19 with a P/E ratio of 31.1 and P/S ratio of 1.1.
Family Dollar Stores (
FDO
)
Ackman exited his position of 2,614,863 shares at an average
price of $67. He acquired the position over the first, second and
third quarters of 2011 at average prices of $48, $53 and $52. The
stock has declined 4% since then.
Family Dollar Stores is one of the fastest growing discount store
chains in the U.S. Family Dollar Stores has a market cap of $7.45
billion; its shares were traded at around $64.7 with a P/E ratio
of 18 and P/S ratio of 0.9. The dividend yield of Family Dollar
Stores stocks is 1.3%. Family Dollar Stores had an annual average
earnings growth of 10.8% over the past 10 years. GuruFocus rated
Family Dollar Stores
the business predictability rank of 4-star
.
Kraft Foods Inc. (
KFT
)
Ackman closed his position in Kraft Foods in the second quarter.
He sold his remaining 15,506,172 shares at an average price of
$39. He bought the majority of the holding in the first quarter
of 2010 at an average price of $29.
Kraft Foods is the largest branded food and beverage company
headquartered in the U.S. Kraft Foods has a market cap of $72.55
billion; its shares were traded at around $40.7 with a P/E ratio
of 17.1 and P/S ratio of 1.3. The dividend yield of Kraft Foods
stocks is 2.8%. Kraft Foods had an annual average earnings growth
of 0.4% over the past 10 years.
See
Bill Ackman
's portfolio here. Also check out the Undervalued Stocks, Top
Growth Companies and High Yield stocks of Bill Ackman.About
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