Bill Ackman Says the Idea His CNBC Slot Pushed Market Down is ‘Absurd’

(Bloomberg) -- “The idea that my appearance pushed the market down an additional 4% that day is absurd,” activist investor Bill Ackman said in a letter to Pershing Square investors about his CNBC TV appearance last Wednesday.

  • Ackman was responding to questions whether his CNBC TV appearance was intended to drive down markets so the company could profit on previous hedges.
  • Ackman said the hedge already paid off prior to his going on CNBC.
    • Company sold more than half the hedge prior to the show and the balance over the next three trading days, Ackman said.
  • “By selling the hedge, we generated $2.6 billion of proceeds, the substantial majority of which we invested in both new and existing investments, which we believe will payoff as markets recover,” Ackman wrote.
  • NOTE: Ackman Makes $2.5 Billion Recovery Bet Amid Virus Tumult (1)

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