Billionaire William Ackman-owned Pershing Square Capital Management LP cashed out its 0.71% stake in Nike Inc., earning around $100 million in profit, Reuters reported March 23, citing "a person familiar with the move."
Ackman reportedly declared in January that he had taken a passive stake in the U.S. footwear retailer in October 2017. A source told The Wall Street Journal that Ackman did not have plans of initiating changes in Nike, believing that the retailer is already "on the right path."
The hedge fund's exit from Nike came shortly after the company posted a net loss of $921 million in its fiscal third quarter.
Last year, Pershing suffered losses from its investments in Valeant Pharmaceuticals International Inc. and Herbalife Ltd. It also lost a proxy battle with Automatic Data Processing Inc. in November 2017.