Create hes taking a lot of heat. This is an unquestioned big victory. This was a 2. 6 billion score. Take a look at this name. They first got into it in september of 2011. They built the stake over a course of a month or so with prices ranging at about 63 with the average price 55. After putting new direct orreor the board and being involved with that, they began selling stock 6 million shares in late 2013 at about 142 a share so theyre up about 90. Two more sales in the years that followed at a higher price range and then the 9. 8 million share yesterday. They made most of their profits, roughly 2 billion on the stocks performance but they also benefitted from a currency hedge. They will use the proceeds of the sale to make one or more new investments in the main Fund Although not necessarily through a special vehicle. The timing couldnt be better. The fund is down about 19 through july thanks in large part to the awful performance of val ent pharmaceuticals and then theres herbalife. Given all that redemptions have been in focus ackman said in an investor call the first half of the year the redemption rate was not relatively high but its early yet to know how theyre going to do during the current quarter, the redemption deadline and the herbalife news and the Canadian Pacific performance is in a couple of months. As you know as well as anybody the good stories of his career have been overshadowed of late with the herbalife but this is being called one of the greatest corporate turn arounds in corporate history. When you look at what the performance of cp was before ackman got in, you were talking and bill was pointing this out to me today a company with margins that were less than half of its competitors. Now it has its margins from 19 to 40 . They won the proxy fight and it has been a tremendous turn around in the company and obviously the stock wind fall. Absolutely. The thing thats interesting about ackman and the reason we love to talk about him hes had some really bruising defeats. Hes had super big scores as well. During the financial crisis his work there and with a name like Canadian Pacific today makes him a stand out in this business. Last year he was down about 22 and this year 19 at this point but well see how it goes for the rest of the year. Herbalife, the storys not fully over yet and in terms of valiant hes on the board and he may be trying to effect changes there. So maybe it needs a runway. Thanks as always. With us for the hour is our panel. Ackman told me hes open to ideas so we thought wed have fun with this. In the kind of market were in, were near all time highs, values may be hard to find in the marketplace today, but where should bill ackman go next. I think theres a sector of the market where there is still value is old Line Technology and a name that has come up on radars before is kwal kom. This has to be a Large Company. It fits the bill. Theres a lot of cash on the Balance Sheet which is something he can do something and the general chip sector and particularly mobile phones is ripe for consolidation. This is something he could very easily get involved in. The two things against it are Jana Partners have been activists in the name and its an area he generally hasnt been in before. I was going to say that part of it. Hes been in a lot of different sectors whether its retailer whether its herbalife or transportations so i dont think theres anything that precluded him from going into a new field, especially one that has a loot of value in it right. How about a return to an old field. Hes been in mcdonalds before. Hes been aggressive in the burger world. His push before was spin offs. Hes talking about reets. I love the leadership of mcdonalds and the direction theyre pushing in right now and if they could unlock something more, jim is talking about huge companies, this is a Large Company and they have cash so this fits a lot of things. Hes been there before wch maybe he thinks theres something he can unlock that they have not unlocked yet. One of the issues i gathered from speaking with him and kate its good youre sticking around here i get the feeling hes looking for something thats not doing that well. Mcdonalds is doing well. Maybe one of the things with valiant is the time he got into valiant the company was doing well. Hes looking for something that he can help turn around. He had a slightly different play at the outset. When he got involved with valiant it was to help them purchase oregon. He had a different idea in mind and that may have been his intention. It evolved into this valiant but i think you make a good point and one question im curious about is activists dont seem to pursue these troubled oil drillers. Ive heard other activists tell me its too volatile and they feel that way as well about new tech if you will. Even though those areas would seem ripe for opportunity. I think the road map in 2013 is a road map that can be followed by bill ackman today or anyone. If you look at the Earnings Release for Cf Industries that clearly from a valuations standpoint and a standpoint of understanding the debt side and the equity side which mr. Ackman is proficient in understanding the debt side is important as well with this company because the company is reinstructing. Dan did well in 2014 with Cf Industries. Its a quality company. The problem is pricing and thats been the challenge. Nitrogen pricing is going to make a rebound recovery here. Were seeing early signs of that as it relates to natural gas but its a name for mr. Ackman and any other activists would i be looking with certainly as you raise the amount of capital he did. I like phillips 66. I like it for me and id love to have mr. Ackman join me and i like it because warren buffet owns 14 of this one. One magazine called the baby buffet at one point. Right. One of the issues that kate through her coverage brought up is hes had some pretty high flyers that have worked out that have flipped and gone the wrong way against him. If youre in one that warren buffets in outside of ibm if you bought it at 195 if you follow buffet at all youre doing okay. In phillips 66 i like the idea theyve got pipelines and could see a spinoff of Something Like that. Could you see the chemical sp e spinoff. Theyve really got four leverage at least and its not hes got industrial experience. We think hes chasing it up to the highs. Thats the total feeling, hes not going to buy something thats chased all the way. Hes not going to chase something all the way. I think if you pull backfi back phillips 66 over the last year, cf is in an abyssal you want to buy a business that is really challenged right now. I think its close exposure to the market where some of the names mcdonalds or phillips 66 theyre hanging up well and then you fell victim to a market decline. Some of the victories of his career have been turn around. Its not just this. Its General Growth Properties was a bankruptcy and turned out to be one of the greatest Hedge Fund Investments that has ever been made. I have i love the fact that our some of our viewers are participating on twitter with all this. They suggest agrium or pot ash. I think pot ash you guys had some unusual activity a couple of months ago but i think there youre going to have regulatory hurdles because it being north of the boarder. Ill still go with Cf Industries. I wouldnt think he would want do something with the come moddies. I think you have interesting ideas because if you look at what would he not want, hes exposed to the Consumer Sector and hes got the herbalife situation which is a multi level market, its overexposed on valiant, its like where does he have comp tensy and maybe a sweet spot, where is he protecting himself from some of the possible market declines and yet not overexposing the portfolio to one sector or another. If it wasnt for his valiant position right now one of the names i was looking at was pfizer. It makes sense to me because theyve talked about in terms of spinning themselves already or splitting themselves already. So thats another one of those names. Hes close to it with zoetus. Hes close to it. Fipfizer is a giant. The other thing that might be worth mentioning is he talked up fanny and freddie. This is not a huge percentage of his portfolio. Thats a suggestion that says someone says load up on more fanny mae. Its a question will outside shareholders get to enjoy the profits but its a story he seems to feel good about and hes done a lot of work around what needs to happen there. An interesting conversation. Halftime report is just getting started. When wall street and marijuana mix, you get an upgrade in a stock weve been telling you about for a week. More Halftime Report in two minutes. Narrator adventure can be found anywhere but the best place to start is in the forest. Kubo i spy something beginning with. S beetle snow. Kubo no. Beetle snow covered trees. Monkey nothing to do with snow. Narrator head outside to discover incredible animals and beautiful plants that come together to create an unforgettable adventure. Kubo wow narrator so grab your loved ones monkey dont even. Narrator and explore a world of possibilities. Kubo come on, this way. Narrator visit discovertheforest. Org to find the closest forest or park to you. Europeanan banks today in the news after the bank of england cut the Interest Rate by 1. 5 . We have what all this means for the Federal Reserve. What do you think this means . The rate cut was expected. The bond buying was not. How is the fed die guesting this. And the Forward Guidance which is telling them theyre going to remain low. I think its another reason for the fed not to hike. Theres a Global Movement to cut Interest Rates. What the fed will tell you is that the economics in the u. S. Are different and that weve had generally stronger growth and lower unemployment, somewhat higher inflation, but ultimately there are limits to how far the fed is going to go relative to its peers around the world. I think the central question is some members of the fed seem somewhat hell bent on raising rates this year at least one time. Lets say one time. By virtue of the fact that Central Banks around the world are going the opposite direction arent they doing the feds work for it. To an extent thats definitely true. Im not sure that hell bent is an official Monetary Policy term. It depends on which fed person. You guys are laughing while i mock you. I think theres a kind of bureaucratic mode of this which is they were in normalization. That was december 2015. So were we might get to a year without another hike. As i said in june i officially declared the end of the first hiking cycle. It cant be it cant here the ec echo of it. Some people joke ten years of waiting and all we got was a quarter point. I was reviewing a portfolio and in the investment conclusions there was the economic evidence and there was the expectations and global Central Banks. When it came to the line and this is a 10 billion plus Portfolio Fund came to the fomc the statement was make sure you have a coin in your pocket. How does the Federal Reserve restore the credibility it lost. I think about this all the time because im trying to figure out how the fed can create a Monetary Policy that is not dependent upon tomorrows jobs report. It feels to me that the overall direction of a tanker should be determined not by the latest wave coming to the tanker. It should be more at stake here. So what im trying to figure out is it a matter of bad luck in that weve had all of these different shocks to the economy that are unexpected and so what the fed finding itself is wound up to do one thing and then you have Something Like brexit come along. I think we would be sitting here talking about the july hike or the certainty of a september hike if it wasnt for brexit. If thats the case the fed is no dump dumber or smarter than the market is. The market has been smarter than the fed has been. Thats the issue that we once again find ourselves dealing with. If the fed moves in september, the market is going to be completely off sides by that. You can look at that through the feds funds future and talk to investors. The market would be way off sides if they go. Unless they telegraph it at jackson hole. They wouldnt be off sides for a december hike. Id like to go back to your original question which is why are they so enthused about raising rates and they know this economic expansion which depending on oh you you measure it at seven years long and we havent once had a quarter about 3 gdp growth theyre worried that the steam runs out of this engine before too long and the only tool they would really have to combat it is negative Interest Rates which arent working globally. And have different implications in the u. S. I think another issue is lets go back to the june press conference with janet yellen when for the first time i remember she internalized this notion of section yar stag nation where the growth rates of the u. S. Are lower than they originally thought, stuff they thought was temporary may be more permanent. Im not sure exactly how much enthusiasm there is for creating restrictive monetary policies. I think they want to claw back a little bit in part of look what karney did today, he had a quarter to cut and he was able to respond with some amount of stimulus. What happens this is why were following boe so closely. What happens if the u. S. Has a shock. What does the fed have. What about carney said in the press conference after when he said there are going to be not just incentives but penalties for banks that dont lend and would you see any of that extending over here. Certainly theres been a lot of trep addition on the part of the banks to lend to anybody but the best corporates at these low rates. Theres a play book for central banking. This is a segment where we call it how the fed works. Theres a theres a part of the fed playbook that guys like stan fisher used in israel. Mark carney used it but its the bullying of the banks playbook. We havent used that here in the states. The bigger the financial industry in a country the less it works. Stan fisher could call in the israel banks around the table and say you will dump this bad real estate stuff. Carney can call in the federal banks. Im not sure thats part of the u. S. Monetary policy. You scared the heck out of me thinking they would jawbone u. S. Banks into doing that. I think if you look at israel im not going to argue with you. Keep going. How should investors play it . Ben from nashville tweeted halftime looking for a trade school on how to buy voluntarilitity. Its a conversation we had yesterday. I get emails and texts and tweets constantly about it scott. Theres two answers. The best way is if youve had an incredible run to the upside like weve had and you look at the s p 500 and youre involved with the market theres nothing wrong with taking profits off and using stock replacement strategy to buy inexpensive options. The other side is you can hedge yourself. When the volatility the important part about this is if youre hedging yourself are you is your portfolio mimicking the s p 500. What does your portfolio look like and then you go to that side of it and you start to buy to protect your portfolio to the down side at these low levels. The more advanced you are, the more you can take a step and do a call spread which is the only way i traded. I never buy vicks calls outright because its the real pros and the deep end of the pool you need to have a spread in place. Same thing with the spider, i think thats a great way. You buy a spread when you think its too low but that is going to increase the volatility. What about the focus on voluntarilitity. Dont like them. Why. Most of the time theyre not going to give you what you expect out of them. There was one time during this year where john and i both were using the uvxy. The problem is because of its leverage its completely recalculating every day so its not going to act like youd like it to act unless you get the move immediately. Theres another problem which is the futures market. Theyre always pinpointing a certain durations of the futures and in order to do that they have to sell some of the near futures and sell the longer futures. Theyre paying more and selling for less what they paid more for the day before. So you have to get the timing right. If you do any of these its a home run but youve got to be in and out within less than two weeks, no longer. Do you guys see a problem in the usage of these volatility etfs because much has been written about the potential powder keg they could be. Huge push. I dont use any of them. Im not trying to bash them but i dont use them. Youll use the spy or go directly to that stock or do a different etf but not volatility indexes. Lets look at oil now. Its moving higher over the last 30 minutes. It was back above 41 and there it is moving to 42 a barrel on the september contract its a gain of better than 2 today. On the eve of the olympics in rio the big three all taking big positions at the starting line. Who will take gold, silver and bronze. Well werestle with that next. Thats the move following earnings were trading other movers along with square. [announcer] is it a force of nature . Or a sales event . The summer of audi sales event is here. Get up to a 5,000 bonus on select audi models. Hthis bad boy is a mobile trading desk so that i can take my Trading Platform wherever i go. You know that thinkorswim seamlessly syncs across all your devices, right . Oh, so my custom studies will go with me . Anywhere you want to go the markets hot sync your platform on any device with thinkorswim. Only at Td Ameritrade 2016 summer olympic games. They start in brazil in less than 24 hours down in rio. Our number one event on the desk is how to trade at todays competition between the Athletic Apparel sponsors. Pete kick us off here. Im going to kickoff the gold medical. Its going to go to adeedis. What theyre doing is incredible