In a letter sent last night to investors in his Pershing Square Capital Management fund, Ackman said that this level of participation makes his company one of Netflix’s top 20 shareholders.
The businessman explains that he began to build his position last Friday, following the disappointing quarterly results revealed by the entertainment group, which resulted in a stock market correction of nearly 22%.
Bill Ackman cites an opportunity to acquire stocks at an ‘attractive valuation’, stressing that he has always admired Netflix, both as a consumer and as an investor.
He explains that his investment is similar to that made in Universal Music Group, seeing two admirable business models within the streaming market.
‘Many of our best investment ideas have arisen when investors with a short-term horizon dump great companies at prices that look extremely attractive to those with a long-term view,’ he concludes.
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