Bill Ackman already has a 29% return on his Nike bet

Activist investor Bill Ackman’s $9 billion Pershing Square Capital Managment has taken a passive position in sports apparel and footwear giant Nike (NKE).

In a new investor presentation, the hedge fund manager provided a brief update on his new investment, calling it a “high quality business” that should see strong revenue growth and margin expansion.

Pershing Square Capital explains its new Nike investment.
Pershing Square Capital explains its new Nike investment.

Nike was one of the fund’s few winners in 2017, contributing 0.8% to Pershing Square Holdings’ performance, which is the publicly-traded vehicle led by Ackman. Pershing Square Holdings ended 2017 down 4%, while the S&P 500 returned 21.8%.

“NKE’s share price including dividends has increased 29% from our average cost to January 19, 2018,” Ackman noted in his presentation. NKE was trading at around $67 on Jan. 19, which is where it’s trading today.

Reuters first reported the Nike stake is a passive position. It’s unclear how big the Nike position is at this time. In mid-February, hedge funds like Pershing Square will have to report their long equity holdings in regulatory filings known as 13-Fs.

Ackman, 51, is known for being an activist investor, taking large positions in a handful of companies and pushing for changes.

Bill Ackman, CEO of Pershing Square Capital Management, plays tennis in Nike gear Photographer: Michael Nagle/Bloomberg via Getty Images

Julia La Roche is a finance reporter at Yahoo Finance. Follow her on Twitter.