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William Ackman From Komfie Manalo, Opalesque Asia:

Down -16.0% in Q3 2011 (-14.6% YTD), Pershing Square’s William Ackman says he is not concerned with volatility and even expects to generate profits "without substantial improvement in the global economy."

The activist investor said in his quarterly communications with investors obtained by Opalesque, that while many investors have significantly reduced their equity exposures because of the lingering concerns over the European debt issue as well as the political stalemate in the U.S. regarding their budget, Pershing Square would not be following the same approach "because it is inconsistent with our investment strategy."

"While a more positive macro environment will increase the value of our holdings, we expect to generate high long-term rates of return from our existing holdings even without a substantial improvement in the economy. I have come to think of our investment approach as akin to a form of long-term arbitrage, where we invest and then work with our portfolio companies to cause the spread between our purchase price and intrinsic value to narrow. In some cases, in addition to unlocking existing value, we can assist a company in increasing its long-term intrinsic value by bringing in new management, adopting a change in strategy, modifying its structure and approach to allocating capital, by selling or spinning off non-core assets, through cost control and with other approaches," he told his shareholders.

Last week, ......................

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