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Revisiting Three Stocks Bill Ackman Sold in Q1 2012

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Bill Ackman is the CEO and founder of hedge fund Pershing Square Capital Management. Frequently, Ackman has invested in large-cap companies and taken an activist role with their management. Ackman has invested in companies such as Wendy's International (NASDAQ: WEN), J.C. Penney (NYSE: JCP), and McDonalds (NYSE: MCD).

On May 15, Pershing Square Capital filed a 13-F report with the SEC, revealing the firm's holdings as of March 31. As compared to Pershing's previous filing, the company reported decreased stakes in Family Dollar Stores (NYSE: FDO), Kraft (NASDAQ: KFT) and Fortune Brands Home & Security (NYSE: FBHS).

How have these three companies performed since March 31, the end of first-quarter 2012? See below.

Family Dollar Stores: As of March 31, Bill Ackman reduced his shares of Family Dollar by 68.81 percent to 2,614,863 shares.

For Family Dollars' second-quarter fiscal 2012, the company saw an increase in revenue of 8.6 percent from second-quarter fiscal 2011. The company attributed this revenue increase to an increase of sales volume. Also, the company saw its net income increase by 10.7 percent to a total of $136.4 million.

On April 23, Family Dollar director Pamela Davies sold approximately 1225 shares of the company at a value of around $77,505. Insider sales often signal that management might not believe a company has a sound future.

Family Dollar traded up around 9.2 percent since March 31, but closed around 2 percent lower for Wednesday's trading session. The company is scheduled to report third-quarter earnings on Thursday, June 28.

Kraft Foods : As of March 31, Bill Ackman had reduced his holding of Kraft Foods by 27 percent. After this reduction, Pershing held 15,506,172 shares of Kraft Foods.

On May 3rd, Kraft Foods reported first-quarter fiscal 2012 results that slightly exceeded analyst estimates. Kraft increased its net revenues by 4.1 percent to $13.1 billion. In addition, the company reported diluted quarterly earnings per share of $0.46, compared to $0.45 from the same quarter last year.

Since March 31, Kraft has traded down about 1.6 percent. Wednesday, Kraft closed approximately 0.2 percent lower.

Fortune Brands Home & Security: Bill Ackman reduced his shares of Fortune Brands Home & Security by 36 percent as of March 31. Following this reduction, Pershing Square Capital owned 13,323,249 shares of Fortune. Wednesday, this amount of shares was worth around $282 million and comprised around 8.35 percent of Fortune Brands' outstanding shares.

The company reported strong first quarter results and raised its full-year outlook for fiscal 2012. For the first quarter, Fortune saw net sales increase by 12 percent to $799 million. Also, the company raised its guidance for full-year net sales and diluted earnings per share.

From April 30 to June 15, Fortune Brands Home & Security has seen an increase in its short interest. Between these dates, the company has seen an increase around 1,937,849 shares.

Since March 31, Fortune Brands Home & Security traded down about 4.1 percent. Wednesday, Fortune Brands Home & Security closed around 2.5 percent higher

Posted-In: Earnings Long Ideas News Short Ideas Hedge Funds Trading Ideas General Best of Benzinga

 

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