Hedge fund giant Ackman takes a position, Nike surges 5.5% after hours

Nike's stock rose 5.5% in after-hours trading on Wednesday, after the disclosure of a new stake in the world's largest sportswear company by the American hedge fund giant Bill Ackman's Pershing Square Capital Management. Pershing Square disclosed in documents submitted to regulators on Wednesday afternoon local time that the company added approximately 3 million shares of Nike stock in the second quarter, worth $229 million, despite the retailer facing a sales decline. Wall Street is questioning whether activist investors will become more involved in Nike's affairs. In June this year, Nike experienced its worst day ever, with management stating that revenue is expected to decline this fiscal year. Ackman stated in 2022 that he will no longer be a high-profile corporate agitator, but will take a "quieter approach" to management. Pershing Square's filing did not indicate whether the company intends to change Nike. Nike's board is controlled by Nike co-founder Phil Knight, who along with his son Travis owns almost all of the outstanding voting shares. Pershing Square had previously invested in Nike, and after cashing out from passive holdings in 2018, made a profit of $100 million in just a few months. As of Wednesday's close, Nike has fallen nearly 28% year-to-date