Financier Bill Ackman
Any sensible financier is always looking for quick and big money, but what's there to think about? The goal of any hedge fund is profit, and few people care about the tools to achieve it.
Pressure on the board of directors, collusion, bribery, and even, in some cases, leaking compromising information—all these are tools in the hands of financiers with which they can directly influence the deal and share price.
However, not all investors take this path, and you will learn about the success story of one of them in this article.
Bill Ackman was born on May 11, 1966, in Chappaqua, a suburb of New York City. From childhood, Bill was highly driven, and his drive for success was supported by his equally successful parents, who ran the family real estate business.
He received his basic education at Horace Greely High School, where he demonstrated not only excellent academic skills, but also quite good success in sports.
Training. Trader Career
After graduating from high school, the future financier entered Harvard following his older sister.
It's worth noting that his major was in art, not finance. Nevertheless, he earned a Bachelor of Arts degree with honors in 1988.
After graduating from Harvard, he began actively engaging in real estate and successfully sold his first major property, Union Center Plaza, one of the largest business centers in Washington.
In 1990, Beal became actively interested in stocks, and in order to obtain an education in this area, he decided to resume his education by studying at Harvard Business School.
While studying, Bill opened his first brokerage account and purchased shares of two bankrupt companies. At the time of purchase, the shares were worth just $8, but four years later, after the debt restructuring, their price exceeded $400.
However, Ackman only had the patience to hold the shares for a year, so he sold them at just $21.
It was over time that Bill Ackman realized the simple truth that profits need to be allowed to grow, and premature selling is comparable to missed opportunities.
After graduating from Harvard Business School, Bill Ackman decided to create his own hedge fund, which was named Gotham Partners.
It's worth noting that many discouraged Bill from creating a fund, arguing that his lack of experience would discourage investors. Nevertheless, the fund was created, and its first investor was his mother-in-law, who invested approximately three million dollars in the company.
Bill Ackman actively bought shares of small companies in order to gain a seat on the board of directors and actively influence development from within.
The fund's first major deal was an investment in Rockefeller Center. Following the fund's successful entry into the deal, Bill gained recognition among investors, and his fund began actively attracting investors.
Thus, in just five years of operation, the company's capital grew from 3 to 500 million dollars.
In 2002, Ackman foresaw the upcoming mortgage crisis, so he was one of the first traders who not only dared to talk about the impending crisis, but also opened a short trade against mortgage company MBIA.
However, Ackman not only opened the deal but also publicly exposed all the company's sins. This was followed by a series of legal proceedings that lasted six years.
However, when the 2008 crisis unraveled and MBIA collapsed, Ackman made a large profit for his investors, despite the legal costs.
Bill Ackman then founded another fund, Pershing Square, with just $50 million in capital. By investing in McDonald's shares, the fund was able to earn more than 100 percent of its investment.
Today, Bill Ackman is actively involved in philanthropy through his Pershing Square Foundation. Ackman's net worth is currently estimated at $1.4 billion.
