Bill Ackman on Turnarounds

If this plan is implemented, the Trump administration could begin working on the necessary actions to achieve a successful exit from conservatorship within the next couple of years. These actions would include revising the capital rule to allow the GSEs to earn adequate returns without raising guarantee fees, modifying the existing Preferred Stock Purchase Agreements to act as an ongoing, paid-for government backstop, codifying and communicating the regulatory powers that FHFA would retain post-conservatorship, and recruiting and incentivizing world-class management and boards of directors for Fannie and Freddie. As we previously disclosed in our X presentation, we believe this plan would drive a re-rating of Fannie and Freddie common shares above $40, roughly five times current levels, implying a valuation of over $300 billion for the taxpayers’ 79.9% stake in the companies. We believe a share sale to investors, whether through a “re-IPO” to raise primary capital or a secondary sale of a portion of Treasury’s ownership, is neither feasible while the entities remain in conservatorship, nor necessary as the companies are recapitalizing rapidly through retained earnings. Hertz Hertz is a leading vehicle rental provider in the early stages of a turnaround led by a strong management team. The company has successfully navigated a challenging period, reached important operational milestones, and is now profitable with a strengthened liquidity profile.

The combination of Vantage’s insurance expertise, Pershing Square’s fee-free investment capabilities, and the structural advantages of holding-company-ownership create the opportunity to build a large and highly profitable insurance subsidiary, and an important source of long-term value creation for Howard Hughes. Restaurant Brands International (“QSR”) QSR’s franchised business model is a high-quality, capital-light, growing annuity that generates high-margin brand royalty fees from its four leading brands: Tim Hortons, Burger King, Popeyes, and Firehouse Subs. Despite a challenging consumer backdrop, the company reported strong results of 3% comparable sales growth and 8% operating profit growth in 2025, in line with its long-term algorithm. The company’s two largest businesses, Tim Hortons and the International division, which collectively represent nearly 70% of the company’s profits, are materially outperforming peers. Tim Hortons delivered comparable sales growth of 3%, outperforming the broader QSR industry in Canada while the international business delivered comparable sales growth of 5%, notably outperforming McDonald’s. The turnaround at Burger King U.S. is also gaining traction, with the brand growing at a healthy rate, while the system remains committed to remodeling the majority of its restaurants in the coming years.