Bill Ackman of Pershing Square recently used the Ira Sohn Conference to present his investment thesis for Family Dollar Stores (NYSE: FDO). According to Google Finance,
Family Dollar Stores, Inc. (Family Dollar) operates a chain of more than 6,800 general merchandise retail discount stores in 44 states, providing primarily consumers with a selection of priced merchandise in neighborhood stores. its merchandise assortment includes consumables, home products, apparel and accessories, and seasonal and electronics.
The Company offers a focused assortment of merchandise in a number of core categories, such as health and beauty aids, packaged food and refrigerated products, home cleaning supplies, housewares, stationery, seasonal goods, apparel and home fashions. Its stores operate on a self-service basis, and its low overhead enables it to sell merchandise at a moderate markup.
According to Market Folly,
The hedge fund manager believes that FDO can benefit operationally by being taken private, citing KKR’s past acquisition of Dollar General (DG) as a successful LBO in the space.
Since the presentation on May 25th, Ackman has doubled his position in FDO and now owns 8.9% of the company.
The following is Ackman’s presentation from the Ira Sohn Conference:
Ackman-Family-Dollar
As of 7/1, Covestor’s MergerArb model held FDO. MergerArb is managed by Atlas Capital.
Sources:
Company description from Google Finance as of 7/3: http://www.google.com/finance?q=fdo
“Bill Ackman’s Presentation on Family Dollar (FDO)” Market Folly. 6/14. http://www.marketfolly.com/2011/06/bill-ackmans-presentation-on-family.html
