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Ackman Takes 7.5% Stake in Mondelez International Inc (MDLZ) but Market Has a Reserved Reaction

Bill Ackman has found a new activist target in Mondelez International Inc (NASDAQ:MDLZ), in which his fund, Pershing Square, has just disclosed a 7.5% stake. The position contains around 120.27 million shares and will now allow the investor to engage in discussions with the company’s management and board of directors regarding the course of business and other issues. Knowing Ackman’s track record of activist campaigns, we might anticipate more details regarding Ackman’s plans in the near future. On the back of the news, the stock of Mondelez jumped by around 4%, but later retracted and currently trades around 0.80% in green.

Bill Ackman, Carl C. Icahn, William A. Ackman, Pershing Square Capital Management, Icahn Capital LP,

This news is particularly important, because following activists like Ackman is an easy way for retail investors to get some profits. For example, a lot of large and small investors followed Ackman into Allergan last year as he made a hostile bid for the company and even though the deal fell through following the sale of Allergan to Actavis, those investors still sold their shares at a significant premium. Therefore, piggybacking on activist campaigns could be a simple way to beat the market. However, the outcome of activist campaigns is often uncertain, therefore there is a lot of risk involved. Through extensive research, we determined that another way to benefit from the insights of larger money managers is to follow their small-cap picks. Our portfolio of 15 most popular small-cap ideas among a pool of over 700 investors, returned around 123% since...


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