Here’s How Billionaire Bill Ackman’s Top Picks Performed In the Fourth Quarter

#3 Canadian Pacific Railway Limited (USA) (NYSE:CP)

Shares held (as of September 30): 13.94 million
Total Value (as of September 30): $2 billion
Percent of Portfolio (as of September 30): 14.35%

Canadian Pacific Railway Limited (USA) (NYSE:CP) was the second worst performer of Ackman’s top picks for the fourth quarter, as lower commodity prices, softer economic activity, and a weaker Canadian dollar sent shares of the railroad down 11.12%. After several straight years of solid stock performances due to rising operating margin and robust demand, it looks like the Canadian Pacific stock needs a couple quarters to consolidate its gains. Canadian Pacific is also trying to acquire Norfolk Southern, which Ackman believes will be profitable for shareholders of both companies.

“[…] CP’s proposed merger with NS would provide unsurpassed levels of safety and service to its customers and communities while also increasing competition and creating significant shareholder value. When one owns a company run by extremely able management, it almost always makes sense to get additional assets under their management if the new assets can be acquired at a fair price,” Ackman said.

A total of 39 funds among those we track owned shares of Canadian Pacific Railway Limited (USA) (NYSE:CP) at the end of the third quarter of 2015, down from 51 funds  at the end of the previous quarter.