Bill Ackman's Target (TGT) Fund Rose 48% Last Month
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Bill Ackman's Pershing Square's fund that invests solely in Target (NYSE: TGT) saw its value gain 48% in March. For the month of March, Target saw its shares rise by 21%, but Ackman's Target focused fund typically moves by twice the move of Target because Ackman employs two-times leverage by using derivative type contracts, such as options. Ackman's Pershing Square owns 26.8 million shares of Target and more in options, uses two-times leverage in the fund.
Bill Ackman is currently trying to get directors that represent his interests onto Target's board of directors and he wants investors to vote against the Target's plan to shrink the board by one member.
In February, when Target's stock declined 9.3%, Ackman's fund was off by about 33%. That was due to options decaying and a drop in the volatility of other options, according to the Dow Jones newswire. It actually got worse in January when Ackman's Pershing Square IV fund lost 40.1% in Target, which at that time brought the total loss in the fund to 89.5%.
As of now, investors in the fund only have about $0.13 or $0.14 for every dollar they put up, according to one investor.
Target's shares are trading up 6.22% to $37.22 in today's trading.
Target Corporation engages in the operation of general merchandise and food discount stores in the United States.
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Voting Proxy for Target Shares
judy mosing on May 4, 2009 09:49 AMI am sure Ackman is trying to take over target AND IF HE DOES the company will go down the path of Federated Stores and other large Retailers they will take the money out and leave Target bankrupt. The only agenda they men have is how to make more money for themselves. Lets go back a few years when Than DaytonHudson was in a takeover...it did not happen and Target went on to better things. This is not a fairy godmother here trying to help our stock this just a group of men looking out for themselves. Let us vote for the people that are on the board now. Any of us who have been in retailing for awhile have seen the ups and downs. We will come out of this and we WILL be STRONGER. Vote the same board in!