Bill Ackman and his Pershing Square Capital Management are out with their Q3 2013 letter to investors. For the quarter they were down 5% and YTD they are just about break even. In the letter he talks about the rationale for exiting the J.C. Penney position (where they incurred a 50% loss), Herbalife (where they have covered a portion of their short to avoid a potential squeeze and in place bought long-term puts). What is interesting is he discloses that this position represents 12% of their funds. He goes on to state that he thinks Herbalife represents an amazing risk / reward at the current price.
He then goes on to briefly discuss their position in Air Products and Chemicals.