Pershing Square Raises Cash, Post Apocalypse

After losing $700 in a single day of trade, Pershing Square sold a 20 million share block of MDLZ, one of their better acting, liquid positions.

They cite all sorts of bullshit reasons for the sale. But make no mistake, they are fighting for survival and trying to get tactical, in order to make up lost ground.

“After the close, we completed a block sale of 20 million shares of Mondelez International. As a result of the sale, we now own a 5.6% stake in the company, are the third largest owner, and have substantial uninvested cash. We reduced our stake because Mondelez had become an outsized position in light of its initially large size and its outperformance relative to other holdings. We continue to believe in the potential for operating improvements and margin expansion that we expect will lead to substantial further increases in value. As a result, it remains our largest exposure. We are reducing the position size for portfolio management purposes only. We have carefully reviewed the balance of our holdings and have concluded that they are appropriately sized. As such, we have no current plans to sell any of our other investments.”

I don’t see them enduring another 20%+ drawdown and surviving to tell the tale. All hands are on deck. Ackman is fighting for dear survival, while playing with a billion plus in his checking account.