Market Folly is a great blog that provides regular updates on the movements of famous money managers. Today, they posted an update on Bill Ackman’s latest 13-F filing. I found the 3 positions he reduced to be interesting.
- Dr. Pepper Snapple Group (DPS): Reduced position by 51%
- Wendy’s (WEN): Reduced position by 15%
- Sears Holdings Corp (SHLD): Reduced position by 39.5%
When I first had a look at DPS after the spinoff, I concluded, with the help of readers, that it didn’t offer any real value compared to KO or PEP.
The Wendy’s presentation puts forward a case why Wendy’s was/is severely undervalued, but there were some aspects I didn’t understand and numbers which I didn’t want to take for granted. I took the education lesson and moved on.
I also never became interested in Sears Holdings (or Wendy’s) because the basis for its value was hidden in its real estate. VVTV is a case where a majority of its assets is also tied up to tangibles but I continue to hold because I see it as a better opportunity than either Sears or Wendy’s. However, real estate special situations are not part of my usual strategy.
I own VVTV at the time of writing