Headline

Bill Ackman's Pershing Square Capital Management Takes Stake in Nike

Headline

Bill Ackman's Pershing Square Capital Management has taken a stake in Nike, the world's largest sportswear company, according to a regulatory filing.

Key Facts

• Pershing Square Capital Management owns roughly 3 million shares of Nike and 68 million shares of Nike convertible bonds.
• The stake is worth about $1.5 billion based on Nike's closing price on Wednesday.
• Nike's shares gained about 5% in after-hours trading after the news was announced.

Background

Ackman is a well-known hedge fund manager who has been investing in Nike for several years.

In 2019, Ackman wrote a letter to Nike's then-CEO Mark Parker urging the company to make a number of changes, including increasing its share buyback program and investing more in e-commerce.

Nike has since made some of the changes that Ackman recommended, and the company's stock price has been on a steady upward trend.

Why is this news important?

The news of Ackman's stake in Nike is significant because it shows that he is still bullish on the company.

Ackman is a respected investor, and his endorsement of Nike is likely to give other investors confidence in the company.

Nike's stock price has been under pressure in recent months due to concerns about the impact of the coronavirus pandemic on its business, but Ackman's investment is a vote of confidence in the company's long-term prospects.