Hertz Global Holdings (HTZ, Financials) shares soared 56% on Wednesday, and 43.8% on Thursday, after a regulatory filing showed Bill Ackman (Trades, Portfolio)'s Pershing Square had built a 4.1% stake in the rental car company by the end of 2024. A person familiar with the matter told CNBC that Pershing Square has since raised its position to 19.8% through shares and swaps, making it the second-largest shareholder in Hertz.
The investment firm received an exemption from the U.S. Securities and Exchange Commission to delay disclosing its position, allowing it to quietly build a larger stake before the news became public.
Hertz, which filed for bankruptcy in 2020 during the COVID-19 pandemic, reemerged from Chapter 11 in 2021. After its restructuring, the company heavily invested in electric vehicles, particularly Teslas, a strategy that has since strained its finances.
The drop in the residual value of its electric vehicle fleet contributed to a $2.9 billion loss in 2024. The company reported a $245 million loss from the sale of EVs in the fourth quarter alone.
Ackman's move comes as Hertz continues to face headwinds stemming from its aggressive EV strategy and a decade of financial challenges. However, news of Pershing Square's sizable investment reignited investor interest, sending the stock sharply higher both during regular trading and in premarket sessions.
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