Bill Ackman is clearly a very smart guy. His hedge fund Pershing Square has notched up compounded net annual returns of over 16 per cent since 2004.
Even this year his concentrated portfolio of big stocks is down only 7.3 per cent, despite the Netflix debacle. That’s impressive, especially after a hat-trick of incredible years. It shows he didn’t just notch those up by carpet-bombing Silicon Valley with capital.
But he is definitely not a macro investor, which makes us wary of his…