Bill Ackman

Pershing Square Capital

Annualized
Return

10-Year Compound Annual Growth Rate

7.9%

10-Year ROI

10-Year Cumulative Return on Investment

113%
S&P 500 Index
Annualized
Return
5.9%
10-Year
ROI
77%

Current Holdings

Ticker Company Portfolio Weight P/E Fwd P/E PEG P/S P/B

Who is Bill Ackman?

William Ackman (Bill Ackman) (born 1966) is the founder and CEO of the American hedge fund, Pershing Square Capital Management (based in New York). Bill grew up in an affluent New York neighborhood, scored near-perfect SATs and graduated from Harvard University with a Bachelor’s and MBA. The first investment book he read was Ben Graham’s “The Intelligent Investor” when he was 20 years old. Today, his personal net worth is $1.7 billion.

Investment Style

“Value”, “Contrarian”, “Long/Short”

Ackman considers himself a value investor, and many times invests contrary to that of the market. He is mostly known for his activist style of investing in that he takes large ownership stakes of companies to change management or setup an M&A deal. He launched an activist campaign on Target and JC Penney’s, to name a couple. He is also very public with his investment decisions, thus has made many appearances on CNBC to call out his long and short positions. Ackman also tends to have a very focused portfolio usually comprising less than 10 stocks.

Warren Buffett

Berkshire Hathaway

Annualized Return

10-Year Compound Annual Growth Rate

7.9%

10-Year ROI

10-Year Cumulative Return on Investment

113%
S&P 500 Index
Annualized
Return
5.9%
10-Year
ROI
77%

Current Holdings

Ticker Company Portfolio Weight P/E Fwd P/E PEG P/S P/B

Who is Warren Buffett?

Warren Buffett (born 1930) is an American business magnate, investor, and philanthropist. He is considered to be the most successful investor in the world. Buffett is chairman, CEO, and largest shareholder of Berkshire Hathaway, a multinational conglomerate holding company based in Nebraska. Buffett is in the top 3 of wealthiest people in the world and is worth $64.7 billion. He pledged to give away 99% of his fortune to philanthropic causes. Buffett grew up in an upper-class neighborhood and loved one thing, making money.

Investment Style

“Value”, “Blue Chips”, “Passive”, “Buy and Hold”

Warren Buffett buys “wonderful companies at fair prices”. He is a passive “buy and hold” type of investor. Buffett buys undervalued blue chip stocks with relatively simple business models. He avoids technology stocks, gold, and commodities as he claims they are either too risky or impossible to predict. Rather, Buffett likes large companies that will be around forever. He invests in low PE and high dividend yielding stocks and emphasizes the importance diversification and compounding.

Carl Icahn

Icahn Enterprises

Annualized Return

10-Year Compound Annual Growth Rate

7.9%

10-Year ROI

10-Year Cumulative Return on Investment

55%
S&P 500 Index
Annualized
Return
5.9%
10-Year
ROI
77%

Current Holdings

Ticker Company Portfolio Weight P/E Fwd P/E PEG P/S P/B

Who is Carl Icahn?

Carl Icahn (born 1936) is the founder and chairman of Icahn Enterprises, a diversified business conglomerate (based in NYC). He grew up in a rough area of Queens, NY. Icahn graduated from Princeton U with a Bachelors in philosophy, and then entered NYU’s School of Medicine but dropped out to join the army. His father was an opera singer until he settled as a substitute teacher, and his mother was a schoolteacher. Despite his non-finance background, Icahn began his career on Wall Street as a stockbroker in 1961 and then started Icahn & Co. (1968), a securities firm focusing on risk arbitrage and options. In 1978 he began taking controlling stakes of companies and ultimately developed a reputation as the ruthless “corporate raider”. Today he is worth $17.1 billion.

Investment Style

“Activist”, “Deep Value”, “Contrarian”

Carl Icahn is known for his hostile takeovers. He has taken controlling stakes of mismanaged companies to fire the managers and replace with more qualified ones. He has had a track record of success doing this, thus earned the reputation of “corporate raider”. Carl Icahn also looks for “cigar butt” companies and contrarian opportunities. He buys up stock of failing investments and turns them around to create the “Icahn lift” phenomenon. In doing this, he has managed to take high risk and achieve very high returns.

Dan Loeb

Third Point LLC

Annualized Return

10-Year Compound Annual Growth Rate

8.4%

10-Year ROI

10-Year Cumulative Return on Investment

124%
S&P 500 Index
Annualized
Return
5.9%
10-Year
ROI
77%

Current Holdings

Ticker Company Portfolio Weight P/E Fwd P/E PEG P/S P/B

Who is Dan Loeb?

Daniel Loeb (born 1961) is the founder and CEO of Third Point, a $4 billion hedge fund in New York. Dan was raised in Santa Monica, California and got his degree in Economics from the University of Columbia. His great-aunt co-founded Barbie Doll and Mattel (maker of Hot Wheels). Today he is personally worth $2.7 billion.

Investment Style

“Activist”, “Distressed”, “Event-Driven”, “Value”

The only thing Loeb cares about is making money for his investors. The strategy he is known for is buying large stakes of troubled companies and return it to profitability. Loeb tends to buy companies that have some sort of “event” that unlocks intrinsic or extrinsic value to the market. He is an opportunist, thus believes there are hidden gems by finding companies that have not completely matured or found its full potential.

David Tepper

Appaloosa Management

Annualized
Return

10-Year Compound Annual Growth Rate

15.8%

10-Year
ROI

10-Year Cumulative Return on Investment

334%
S&P 500 Index
Annualized
Return
5.9%
10-Year
ROI
77%

Current Holdings

Ticker Company Portfolio Weight P/E Fwd P/E PEG P/S P/B

Who is David Tepper?


David Tepper (born 1957) is the founder of the American hedge fund, Appaloosa Management (based in New Jersey). Tepper grew up in the middle-class suburbs of Pittsburgh, PA and is a self-proclaimed C student from the University of Pittsburgh. He grew an interest in stocks from watching his father trade in the exchange. Despite his average upbringing Tepper has managed to become a successful investor and is worth today $11.4 billion.

Investment Style

“Distressed Debt”, “Macroeconomic”

David Tepper specializes in distressed-debt companies. In fact, Appaloosa Management was known as a junk-bond investment boutique in the 90s before it became a well-known Wall Street hedge fund. His portfolio is well diversified of both domestic and international equities, and it makes large macro bets on index ETFs (long and short). The fund saw explosive returns particularly in 2003 and 2009 where it returned 149% and 133% respectively.

The Billionaire's Master Portfolio incorporates 5 uncorrelated investment strategies.