Legal Law

Simply name it the Blue Chip Invoice

In three weeks’ time, pretty much every American invested in stocks is going to own a tiny slice of Elon Musk’s weaknesses and not deliver what it promises, as Tesla is finally (and all at once) joining the S&P 500. And in two and a half years, British investors can become passive participants in the Ackmanaissance, whether they like it or not.

Fund manager Bill Ackman’s Pershing Square Holdings are close to inclusion in the UK blue-chip FTSE 100 index after performing impressively during the coronavirus pandemic.

The fund’s share price rose 116% from March 23rd to 1,134p to 2,459p on November 30th.

Changes to the FTSE Index will be announced on December 2nd based on December 1st closing prices. Changes will take effect upon closing on December 18th.

To be included in the FTSE 100 index, potential carpenters must be in the top 90 by market capitalization to be eligible for inclusion

Of course, as Musk can tell his friend and possible future landlord, if he continues his unlikely run, they can’t keep him out forever. And if Ackman is ever able to strike a deal with the huge SPAC he raised, he and Musk can toast to being S&P 500 friends with a delicious Tesla tequila.

Billionaire Bill Ackman had a standout pandemic feat with Pershing Square – here’s what’s next [FN]S & P’s decision to add Tesla all at once shows the power of passive investing [CNBC]

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