No Result
View All Result
SUBMIT YOUR ARTICLES
  • Login
Friday, October 24, 2025
TheAdviserMagazine.com
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal
No Result
View All Result
TheAdviserMagazine.com
No Result
View All Result
Home Market Research Business

Bill Ackman makes big bet on Hertz becoming tariff winner

by TheAdviserMagazine
6 months ago
in Business
Reading Time: 3 mins read
A A
Bill Ackman makes big bet on Hertz becoming tariff winner
Share on FacebookShare on TwitterShare on LInkedIn



Bill Ackman’s Pershing Square Capital Management has amassed a nearly 20% stake in Hertz Global Holdings Inc. in a bet on the rental car company’s turnaround plan and that tariffs will boost the value of its vehicles.

The firm began buying shares late last year and now has “a 19.8% stake in the company comprised of outright share ownership and total return swaps,” Ackman said in a post on X.

Ackman is wagering that Hertz can get past a bad bet on Tesla Inc. electric vehicles and capitalize on a potential rise in used-car prices stemming from President Donald Trump’s tariff on US auto imports. It also relies on Hertz Chief Executive Office Gil West managing the company’s large debt load and pulling off an ongoing turnaround effort.

Hertz shares jumped 44% in New York trading on Thursday, extending a two-day rally in which the stock more than doubled in value.

West told Hertz employees in his regular Friday note this week that he’s humbled and encouraged by Ackman’s support.

“This endorsement is a testament to our progress, and importantly, the relentless effort each of you contributes every day,” West wrote in an email, according to a person close to the company. “We should be proud of the progress we’ve made but also recognize there is still significant work ahead.”

Trump’s 25% levy on imported automobiles is widely expected to raise car prices by thousands of dollars if it remains in effect for long. That could in turn drive up the value of used cars — especially late-model vehicles that are in short supply — as consumers who find themselves priced out the new-car market turn to previously owned vehicles.

“Hertz is uniquely well-positioned in the current tariff environment,” Ackman said in the X post. “Hertz owns a fleet of over 500,000 vehicles valued at approximately $12 billion. A 10% increase in used car prices would equate to a $1.2 billion gain on its auto assets – equivalent to approximately half of the company’s current market capitalization.”

Ackman sees a route for Hertz to get to $30 a share by 2029. Before this week’s rally, Hertz shares traded for less than $5. Getting there hinges on achieving West’s targets to reach $1,500 in revenue per unit, daily per-vehicle operating expenses in the low $30-range and depreciation per unit of about $300.

Pershing’s math also rests on Hertz getting its fleet utilization to 85%, a level the company has rarely matched and which has historically been closer to 80%.

Ackman isn’t the first Wall Street titan to envision upside from investing in Hertz. Billionaire investor Carl Icahn also thought he could cash in on the rental car company. Instead, Hertz went bankrupt and Icahn took a $1.6 billion beating.

In the near term, Ackman said, “we have low expectations for Hertz’s Q1 and first half results.”

So do analysts covering the company. Six rate the shares the equivalent of a hold and four recommend selling the stock, according to data compiled by Bloomberg.

He also offered a bit of futurism for investors and his followers on X. Ackman floated the idea of Hertz — with its 11,200 global locations — managing a fleet of self-driving vehicles for Uber Technologies Inc. He quipped that he would contact Uber CEO Dara Khosrowshahi.

Khosrowshahi responded in a post on X that Hertz has been a “great partner” of his company, referring to a collaboration since 2021 to offer perks to rideshare drivers who rent electric vehicles through Hertz. Khosrowshahi added he is “excited to brainstorm on how we can expand on our relationship.”

Ackman concluded his post with a warning.

“Investing is risky,” he wrote. “There are no guarantees of a successful outcome. Caveat emptor.”

This story was originally featured on Fortune.com



Source link

Tags: AckmanBetbigbillHertzTariffwinner
ShareTweetShare
Previous Post

How to Get The Equity Out of Your House Without Selling It

Next Post

Anxious About Your Finances? Try These 6 Psychology Hacks, in Honor of Sigmund Freud’s Birthday

Related Posts

edit post
Trump shutting down trade talks with Canada could give Beijing another advantage

Trump shutting down trade talks with Canada could give Beijing another advantage

by TheAdviserMagazine
October 24, 2025
0

President Trump has terminated trade talks with Canada over an anti-tariffs ad featuring Ronald Reagan. If Canada’s Prime Minister Mark...

edit post
Paytm and Vedanta emerge as top buys amid sectoral rotation and profit booking: CA Rudramurthy BV

Paytm and Vedanta emerge as top buys amid sectoral rotation and profit booking: CA Rudramurthy BV

by TheAdviserMagazine
October 24, 2025
0

After six consecutive sessions of solid gains, the Nifty paused for breath on Friday, slipping below the 26,000 mark. While...

edit post
Tomatoes Rs 600 per kg, capsicum Rs 300: Pakistanis are paying a heavy price after conflict with Afghanistan

Tomatoes Rs 600 per kg, capsicum Rs 300: Pakistanis are paying a heavy price after conflict with Afghanistan

by TheAdviserMagazine
October 24, 2025
0

Prices of essential goods have sharply increased in both Pakistan and Afghanistan after border closures disrupted cross-border trade between the...

edit post
Goldman aims for ‘PE returns’ with new ETF

Goldman aims for ‘PE returns’ with new ETF

by TheAdviserMagazine
October 23, 2025
0

Goldman Sachs Asset Management is teaming up with MSCI Inc. to launch an exchange-traded fund that aims to deliver returns...

edit post
Tesla’s weak earnings show how the ‘Musk Magic’ Premium is inflating its share price

Tesla’s weak earnings show how the ‘Musk Magic’ Premium is inflating its share price

by TheAdviserMagazine
October 23, 2025
0

Over the past year, on the day after Tesla unveils its latest quarterly report, this writer has calculated a metric...

edit post
Former BLS chief warns Powell is “flying blind” at a pivotal time for the Fed

Former BLS chief warns Powell is “flying blind” at a pivotal time for the Fed

by TheAdviserMagazine
October 23, 2025
0

The Federal Reserve faces an unprecedented challenge as it prepares to set interest rates next week—making its decision with almost no...

Next Post
edit post
Anxious About Your Finances? Try These 6 Psychology Hacks, in Honor of Sigmund Freud’s Birthday

Anxious About Your Finances? Try These 6 Psychology Hacks, in Honor of Sigmund Freud’s Birthday

edit post
Saylor Stirs The Market With Cryptic Clue

Saylor Stirs The Market With Cryptic Clue

  • Trending
  • Comments
  • Latest
edit post
77-year-old popular furniture retailer closes store locations

77-year-old popular furniture retailer closes store locations

October 18, 2025
edit post
Pennsylvania House of Representatives Rejects Update to Child Custody Laws

Pennsylvania House of Representatives Rejects Update to Child Custody Laws

October 7, 2025
edit post
What to Do When a Loved One Dies in North Carolina

What to Do When a Loved One Dies in North Carolina

October 8, 2025
edit post
Probate vs. Non-Probate Assets: What’s the Difference?

Probate vs. Non-Probate Assets: What’s the Difference?

October 17, 2025
edit post
California Attorney Pleads Guilty For Role In 2M Ponzi Scheme

California Attorney Pleads Guilty For Role In $912M Ponzi Scheme

October 15, 2025
edit post
Baby Boomers Are Flocking to This Florida Town — but Not for the Weather

Baby Boomers Are Flocking to This Florida Town — but Not for the Weather

October 9, 2025
edit post
Trump shutting down trade talks with Canada could give Beijing another advantage

Trump shutting down trade talks with Canada could give Beijing another advantage

0
edit post
As Altria (MO) gears up for its Q3 2025 earnings, a few points to note

As Altria (MO) gears up for its Q3 2025 earnings, a few points to note

0
edit post
2025 List Of All 177 Financial Sector Stocks From Big Sector ETFs

2025 List Of All 177 Financial Sector Stocks From Big Sector ETFs

0
edit post
The Myth of the “Robber Barons”: James Hill versus the Crony Competitors

The Myth of the “Robber Barons”: James Hill versus the Crony Competitors

0
edit post
Five airlines to resume Israel flights next week

Five airlines to resume Israel flights next week

0
edit post
If tokenized gold is just a “trust-me-bro” IOU, what’s really on-chain?

If tokenized gold is just a “trust-me-bro” IOU, what’s really on-chain?

0
edit post
The Myth of the “Robber Barons”: James Hill versus the Crony Competitors

The Myth of the “Robber Barons”: James Hill versus the Crony Competitors

October 24, 2025
edit post
If tokenized gold is just a “trust-me-bro” IOU, what’s really on-chain?

If tokenized gold is just a “trust-me-bro” IOU, what’s really on-chain?

October 24, 2025
edit post
Trump shutting down trade talks with Canada could give Beijing another advantage

Trump shutting down trade talks with Canada could give Beijing another advantage

October 24, 2025
edit post
Paytm and Vedanta emerge as top buys amid sectoral rotation and profit booking: CA Rudramurthy BV

Paytm and Vedanta emerge as top buys amid sectoral rotation and profit booking: CA Rudramurthy BV

October 24, 2025
edit post
Comprehensive Sodium-Ion Battery Market Analysis: Demand Forecast

Comprehensive Sodium-Ion Battery Market Analysis: Demand Forecast

October 24, 2025
edit post
Alnylam Pharmaceuticals – ALNY: Volkskrankheit Bluthochdruck im Visier!

Alnylam Pharmaceuticals – ALNY: Volkskrankheit Bluthochdruck im Visier!

October 24, 2025
The Adviser Magazine

The first and only national digital and print magazine that connects individuals, families, and businesses to Fee-Only financial advisers, accountants, attorneys and college guidance counselors.

CATEGORIES

  • 401k Plans
  • Business
  • College
  • Cryptocurrency
  • Economy
  • Estate Plans
  • Financial Planning
  • Investing
  • IRS & Taxes
  • Legal
  • Market Analysis
  • Markets
  • Medicare
  • Money
  • Personal Finance
  • Social Security
  • Startups
  • Stock Market
  • Trading

LATEST UPDATES

  • The Myth of the “Robber Barons”: James Hill versus the Crony Competitors
  • If tokenized gold is just a “trust-me-bro” IOU, what’s really on-chain?
  • Trump shutting down trade talks with Canada could give Beijing another advantage
  • Our Great Privacy Policy
  • Terms of Use, Legal Notices & Disclosures
  • Contact us
  • About Us

© Copyright 2024 All Rights Reserved
See articles for original source and related links to external sites.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal

© Copyright 2024 All Rights Reserved
See articles for original source and related links to external sites.