The Buzz
Ackman: P&G CEO may need to go
May 8, 2013: 3:38 PM ET
Hedge fund titan Bill Ackman sets his sights on P&G's CEO.
Bill Ackman, the activist hedge fund manager who most recently made headlines over his big short position on Herbalife, zeroed in on Procter & Gamble at the Sohn Investment Conference in New York Wednesday.
The CEO of Procter & Gamble (PG) is one busy man, but that doesn't mean he's solely focused on his work at the helm of one of the world's largest corporations.
Bob McDonald, who's led P&G since July 2009, served on the board of 21 different organizations, including Xerox (XRX)as of early 2012. And Ackman thinks that may be more than a few too many.
"We make the conservative assumption that just attending board meetings and not including travel time, this accounts for 25% of his time," Ackman said during his presentation.
Related: Can Procter & Gamble CEO Bob McDonald hang on?
A P&G spokesperson disputed Ackman's comments and said that McDonald serves on just seven boards. Only one, Xerox, is a corporate board, he said.
Still Ackman made it clear from those thinly veiled comments that he wants McDonald out. He said he's willing to give McDonald two to three quarters to get the company in better shape. By better shape, he wants to see at least 5% annualized growth and some major cost cutting. In both of those metrics, P&G trails its peers, said Ackman.
Ackman called P&G's board "first class" and said he expects the board to make the right decision.
Ackman holds roughly 1% of the consumer product maker's shares, making him one of P&G's top stakeholders. He's been a vocal critic of the company's management and its financial performance since disclosing his stake last year.
Should McDonald fail to turn things around quickly enough, who does Ackman think should step in? He didn't specify, but said there are several quality internal and external candidates.
Ackman has been known for bringing new leadership into his investments, though not all his moves turn out as planned.
He didn't mention J.C. Penney (JCP), the retailer to which he lured former Apple (AAPL) retail head Ron Johnson. (J.C. Penney CEO out after troubled tenure)
Ackman also stayed silent on his big billion dollar short position in multilevel marketing firm Herbalife (HLF).
The Sohn conference is known to produce wild stock gyrations, as investors rush to follow the bets that major hedge fund managers make for or against stocks. Ackman's talk didn't move P&G's share price much.
Related: Herbalife reports record results
But several other stocks were whipsawed.
Corvex Management's Keith Meister told investors to buy wireless data providers Level 3 Communications (LVLT) and TW Telecom (TWTC). He deemed Level 3 to be a long-term consolidator in the industry. TW Telecom, by contrast, could be an acquisition target down the road. Shares of both companies shot up about 7%.
Shares of Yellow Pages company Dex Media (DXM) rallied 30%, after noted short seller and Japan bear Kyle Bass outlined a case for long-term growth as the company moves into digital media.
Clear Channel Outdoor's (CCO) stock gained more than 7% after Mitchell Julis of Canyon Partners gave the billboard firm a thumbs up.
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Sears' stock sinks on poor results
It's a tough week to be a retailer in search of customers. First, the shares of J.C. Penney (JCP) cratered after the Ron Johnson-led retailer reported abysmal fourth-quarter numbers Wednesday night.
Next up: Sears (SHLD). The iconic retailer can't turn a profit or get customers excited about its merchandise or Kmart's. After reporting yet another quarter of steep losses early Thursday, Sears' stock dropped nearly 5%.
Releasing results so close to JCPenney at least makes MORE
Maureen Farrell - Feb 28, 2013 3:15 PM ETPosted in: bill ackman, Eddie Lampert, hedge fund managers, hedge funds, JCPenney, Pershing Square, sears, traders -
Ackman and Icahn duke it out over Herbalife
Hedge fund titans Bill Ackman and Carl Icahn squared off over Herbalife (HLF) Friday afternoon. And it was like a scene from a kindergarten playground.
For 30 minutes, the two lobbed insults at each other on CNBC as Ackman's bet on Herbalife's stock falling to zero drew the ire (and a litany of insults) from Icahn.
After listening to the confrontation, the public now knows a few things about these two.
For one, MORE
Maureen Farrell - Jan 25, 2013 3:30 PM ET -
Ackman calls Herbalife a 'pyramid scheme'
Hedge fund manager Bill Ackman outlined why he and his team of analysts have dubbed the nutritional supplement company Herbalife (HLF) as a "pyramid scheme" at a conference in New York Thursday morning.
Herbalife's stock dropped nearly 4% Thursday, its second straight day of sharp drops. The vitamin maker's stock dropped more than 12% Wednesday, after CNBC reported that Ackman had been betting against the stock for most of 2012. MORE
Maureen Farrell - Dec 20, 2012 12:52 PM ET -
Burger King is back with a Whopper-ing debut
Will the third trip to the public markets be the charm for Burger King's investors?
Burger King (BKW) started trading on the New York Stock Exchange Wednesday, and the home of the Whopper quickly popped nearly 7% from its opening price of $14.50.
In early April, the world's second largest hamburger fast food chain announced a new healthier menu replete with salads, wraps and smoothies. (The new bacon sundae is a glaring MORE
Maureen Farrell - Jun 20, 2012 10:54 AM ETPosted in: bacon sundae, bill ackman, Burger King, Chipotle, JCPenney, mcdonald's, Pershing Square, Wendy's, Whopper, yum brands
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