The activist investor Bill Ackman has built a significant stake in Hertz Global through his investment firm Pershing Square, leading to a strong rally in Hertz stock. According to the latest reports, Pershing Square now holds approximately 19.8 percent of Hertz’s shares, making it the second-largest shareholder of the company, according to insider information.
Ackman’s Stake and Its Impacts
This stake was only recently disclosed after Pershing Square received a waiver from the US Securities and Exchange Commission (SEC), which allowed it to build the position quietly for months. This prevented a premature stock jump due to the announcement of the stake and allowed Ackman to make a strategic entry.
The market’s reaction to this news was extremely positive: On Wednesday, Hertz stock rose over 56 percent on NASDAQ to about $5.71, and on Thursday it gained more than 40 percent again. Overall, the stock experienced a massive price explosion within just a few days.
Trust in Ackman
The reason for the great interest in Ackman’s engagement lies in his reputation as an activist investor who is deeply involved in the strategy of his investments and wants to help companies create more value with clear actions. Investors are now hoping for an operational turnaround at the recently troubled car rental company.
Ackman’s entry is seen as a vote of confidence and fuels speculation about possible restructuring or strategic realignments at Hertz. If he succeeds in making the business model more stable or providing new impulses, this could unlock significant price potential. The stock is currently still trading well below its previous highs.
For private investors and retail investors, this development offers opportunities for significant price gains, although there is a high risk given Hertz’s continued difficult financial situation. However, the market reaction clearly shows confidence in Ackman’s ability to enhance value.