Bill William Ackman CNBC 10/30/08 - TGT

William ( Bill ) Ackman of Pershing Square Capital, was on CNBC this morning, October 30th, 2008. Bill Ackman is a value investor who takes huge long positions in companies and then pressures management to create better value for shareholders. He is a great investor so his words shouldn't be taken lightly.

The best thing the Federal Reserve has done so far is inject 250 billion in the banking system. I think stocks are cheap, The Fed has taken important steps so far. Some banks will need more capital but the money the Government has put on the table so far may be enough.

I think the best hedge fund managers have raised money to pay back investors already. Are we almost finished with the liquidation? That's tough to answer, but we think stocks are very cheap at these levels. I don't think capital is going to come out of hedge funds in a huge way, I think the capital will be reallocated into different hedge funds.

Target ( TGT ) - We own just under 10% of the company, Target owns land under 85% of its stores. We want to spin the land off into a company and have Target pay rent to the company. TGT's cash flow goes up by 600 million per year. Target's dividend would go from $.60 to $1.86 but the dividend is going to be coming from the REIT. Target has virtually no default risk. Bill Ackman says this is one of the main reasons they bought TGT shares in the first place.

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