Bill Ackman's Pershing Square Makes Big Bet on Nike

Fund Owned 3.4% Stake As of June 30

Shares Rise After Hours on News

Bill Ackman's hedge fund Pershing Square Capital Management disclosed a new stake in Nike on Wednesday, sending the sportswear giant's shares up in after-hours trading.

According to a regulatory filing, Pershing Square owned roughly 3.5% of Nike's outstanding shares as of June 30. The stake is worth about $1.4 billion based on Nike's current market capitalization.

The news of Pershing Square's investment comes as Nike is facing a number of challenges, including rising costs, supply chain disruptions, and increased competition. However, Ackman is reportedly bullish on Nike's long-term prospects.

In an investor presentation, Ackman said that he believes Nike is a "dominant brand" with a "strong competitive moat." He also said that he is confident in Nike's management team and its ability to navigate the current challenges.