Hertz CEO Gil West expressed gratitude and appreciation following remarks from billionaire investor Bill Ackman, whose investment firm, Pershing Square, recently acquired a 19.8% stake in the car rental company. In a letter to employees, West conveyed his humility and encouraged the team by acknowledging the strong support from Ackman, highlighting the investor’s confidence in the company’s leadership and strategy. Ackman had publicly praised West and the management team’s efforts to boost unit revenue and reduce operating costs, predicting that these initiatives would lead to a significant improvement in profit margins over the coming years. He also noted that Hertz’s capital structure would likely offer shareholders an attractive return on investment.
Although Ackman acknowledged the short-term challenges posed by tariff-related uncertainties in the travel industry, particularly in relation to Hertz’s performance in the first quarter and the early part of the year, he maintained an optimistic outlook. He emphasized that, in the longer term, Hertz is poised to achieve higher and more sustainable profitability, despite the near-term cloud over the sector.
Pershing Square’s sizable stake makes it the second-largest shareholder in Hertz, positioning Ackman’s firm as a key player in the company’s future direction. Following the announcement of Pershing Square’s investment, Hertz’s stock surged by an impressive 44.3%, continuing its remarkable growth trajectory. Since the beginning of 2025, the company’s shares have skyrocketed by over 125%, signaling strong investor confidence in its potential. This significant increase in stock value is seen as a direct reflection of the market’s positive response to the changes within the company and the endorsement from a renowned investor like Ackman.
As Hertz moves forward, the focus remains on executing its strategy of improving operational efficiency and profitability. The backing from one of the world’s most influential investors has injected additional momentum into the company, which aims to capitalize on both the long-term potential of the car rental market and its own internal efforts to boost performance.
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