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- Shares of Nike popped as much as 2% in pre-market trading Friday after Pershing Square Capital, the $12+ billion dollar hedge fund run by activist Bill Ackman, reportedly told investors it had acquired a passive stake in the company.
- The size of the investment is unclear, but Ackman reportedly said at the firm’s annual client dinner that it had already earned a 30% return for his portfolio.
- Ackman said he bought Nike stock when it was trading near $53 a share. The last time it was at those levels was in late October.
- The activist investor is known for increasing the share price of companies after announcing he’s acquired a stake. That’s true of Nike this time around, even though the stake is passive.
- Pershing Square on Monday fired 10 employees— or 20% of its total headcount — as the hedge fund seeks to rebound from three years of losses related to failed bets on companies like Valeant Pharmaceuticals, Chipotle, and Herbalife.
- Nike stock is up 1.23% in early trading Friday, and has gained 27% in the past year.
SEE ALSO: Nike is hearing up for a comeback in the US
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