By BEN SHIMKUS, CONSUMER REPORTER FOR DAILYMAIL.COM
Billionaire investor Bill Ackman has made a surprise move into the car rental world — and investors are paying attention.
Ackman’s Pershing Square Capital Management now has a 20 percent stake in Hertz. He is betting on the value of the company’s half a million cars to soar in value as used vehicle prices jump on the back of President Trump’s auto tariffs.
‘Hertz is uniquely well-positioned in the current tariff environment,’ Ackman said in the X post.
‘Hertz owns a fleet of over 500,000 vehicles valued at approximately $12 billion. A 10 percent increase in used car prices would equate to a $1.2 billion gain on its auto assets — equivalent to approximately half of the company’s current market capitalization.’
Hertz, long a fixture at airports and vacation spots, has faced years of turmoil. But Ackman’s move is being seen as a major vote of confidence — and it’s turning heads among investors.
Since news of Ackman’s stake first emerged, the share price has doubled to $8.22. Ackman bets shares will rise to $30 by in four years.
Famously, traders have watched every move made by Warren Buffett, the most famous investor of all time. His recent purchase of Sirius XM sent shares skyrocketing.
Increasingly, they are looking to the next generation — and Ackman, worth $7.7 billion, is high on that list. He is known for bold bets, having made fortunes by shaking up companies like Canadian Pacific and Wendy’s.
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Bill Ackman, a billionaire investor, sent stock prices shooting up after reporting buying Hertz stocks
Still, Ackman’s portfolio is a fraction of Berkshire Hathaway’s. He’s spent years praising Buffett, the market-moving oracle whose shadow he’s often cast in.
He’s also gained notoriety in recent weeks for his forray into political matters. Ackman has also made headlines for both criticizing and later praising President Donald Trump’s trade moves.
The rental company, known for its giant highlighter yellow signs and A-list sponsored commercials (Tom Brady and OJ Simpson have both been official spokespeople), has lost millions of dollars in several consecutive quarters.
In 2020, the company filed for Chapter 11 bankruptcy as the pandemic kept would-be vacationers locked in their homes.
The company emerged from bankruptcy in 2021 with a new strategy focusing on EVs and environmental stewardship.