by Donald Wood
Last updated: 8:15 AM ET, Mon April 21, 2025
The car rental industry is a key part of travel and one
major investor is betting on Hertz.
According to Reuters.com,
Hertz CEO Gil West released a letter to the car rental company’s employees
explaining that billionaire Bill Ackman and his investment management company, Pershing
Square, purchased a 19.8 percent stake in the car rental brand.
“I am humbled, and we should all feel encouraged by Bill
Ackman’s comments and energized by the strong support shown by him,” West said
about Ackman’s investment.
In comments shared on social media, Ackman said he believes in
West and his management's efforts to “increase unit revenue and reduce
operating cost will significantly improve profit margin over the next several
years.”
“While the tariff announcements have created a near-term
cloud over the travel industry – we have low expectations for Hertz’s Q1 and
first half results – we believe that over the intermediate term, the company
will generate sustainably higher profitability,” Ackman continued.
Ackman also added that Hertz’s “capital structure will
enable shareholders to generate a highly attractive return on investment.”
With the purchase, Pershing's stake in Hertz makes it the
second-largest shareholder in the company. The investment sent the car rental
company’s shares soaring 44.3 percent on Thursday, with the stock rising more
than 125 percent since the start of 2025.
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