Investor Bill Ackman regains success with Starbucks and Chipotle


Bill Ackman, an activist investor and founding director of the New York hedge fund Pershing Square, seems finally back on the track to success after several tumultuous years punctuated by disappointing results and high-profile bets.

As of February 13, 2019, says CNBC, his fund has posted a 24.7 percent jump since the beginning of 2019, thanks to its investment in Starbucks (SBUX) for $51 per share, which is now $71, an increase of 39% approximately.

The same goes for the burrito restaurant chain Chipotle (CMG) in which Ackman started to invest in 2016 for about $405 per share and that now stands at $608, an increase of about 50 percent after a low at $255 in February 2018.

It remains to be seen whether Ackman is making the right choice over the long term by betting on two highly fashionable players in a rather cyclical sector that is likely to suffer from a recession that many investors are announcing for 2020.