In its latest 13F filing with the U.S. Securities and Exchange Commission, billionaire Bill Ackman’s Pershing Square disclosed its holdings as of the end of the first quarter of 2015. Mr. Ackman is a long-term value investor and activist, taking advantage of short-term downward moves in prices to enter stocks. After taking large positions in companies, he then advocates for changes from management in order to unlock more value. Pershing Square returned 40% in 2014 and was up 3.4% to 3.5% during the first quarter of 2015. In its 13F, the fund revealed only eight positions, valued at $14.97 billion. Mr. Ackman’s top holdings, in terms of value, are represented by Valeant Pharmaceuticals Intl Inc (NYSE:VRX), Air Products & Chemicals Inc. (NYSE:APD), Canadian Pacific Railway Limited (USA)(NYSE:CP), and Zoetis Inc (NYSE:ZTS).
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Now, we will discuss Ackman’s top holdings, beginning with Valeant Pharmaceuticals Intl Inc (NYSE:VRX), a new position containing 19.47 million shares, the stake being valued at $3.87 billion. Valeant Pharmaceuticals Intl Inc (NYSE:VRX) is a multinational specialty pharmaceutical company, with a market cap of $76.96 billion. The company’s total revenue rose by 16% to $2.2 billion in the first quarter of 2015 from $1.9 billion in the same period a year ago. Net income was $73.7 million, versus a net loss of $22.6 million in the same quarter last year. Valeant’s stock has risen by nearly 80% since May 2014. Another investor of the company is Jeffrey Ubben’s ValueAct Capital, which held 19.38 million Valeant shares as of the end of the first quarter.
Pershing Square’s second top holding is Air Products & Chemicals Inc. (NYSE:APD), with ownership of 20.55 million shares worth $3.1 billion. The stake remained unchanged over the quarter. The company’s stock, which closed at $147.51 on Tuesday, has gained 24.48% during the past year. Recently, analysts at Deutsche Bank reiterated a “Buy” rating on Air Products & Chemicals Inc. (NYSE:APD), setting a price target of $175.00 per share. Air Products & Chemicals Inc. (NYSE:APD) posted first-quarter 2015 earnings per share (EPS) of $1.55, versus EPS of $1.32 in the same quarter last year. Revenue for the quarter was $2.4 billion, less than the consensus estimate of $2.6 billion. Other shareholders of the company include Andreas Halvorsen’s Viking Global and Daniel S. Och’s OZ Management.
The third position is held by Canadian Pacific Railway Limited (USA)(NYSE:CP), with the investor disclosing a holding of 13.94 million Canadian Pacific Railway Limited (USA)(NYSE:CP) shares, unchanged from the previous quarter, with the position having a reported value of $2.55 billion. With a market cap of $29.2 billion, Canadian Pacific Railway Limited (USA)(NYSE:CP) is a transcontinental railway operating in Canada and the United States. Shares of the company dropped by 5.18% during the first quarter of 2015 despite reporting an all-time high quarterly net income of $320 million, or $1.92 per diluted share in the first quarter of 2015. Revenues rose by 10% to $1.7 billion for the quarter. Billionaire Daniel S. Och’s OZ Management held 4.40 million shares of Canadian Pacific Railway at the end of the first quarter.
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In Zoetis Inc (NYSE:ZTS), Pershing Square slightly upped its position to 41.82 million shares from 41.57 million shares held previously. The stake is valued at $1.94 billion. Zoetis is an animal health company, with a market cap of $23.4 billion. During the past year, the company’s stock increased by an impressive 55.07%. Net income for the first quarter rose by 6% to $165 million, or $0.33 per diluted share, compared to the first quarter of 2014. However, the company’s revenue of $1.1 billion was flat compared to the same quarter last year. Another investor we track with a big position in Zoetis Inc (NYSE:ZTS) is James Dinan’s York Capital Management, which owned 4.48 million shares at the end of the first quarter.
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