Hertz shares surge more than 50% after Bill Ackman takes big stake in the rental car firm

Core Viewpoint - Bill Ackman's Pershing Square Capital Management has significantly increased its stake in Hertz, leading to a substantial rise in Hertz's share price following the announcement of this investment [1][2]. Group 1: Investment Details - Pershing Square's stake in Hertz increased from 4.1% to 19.8%, making it the second largest shareholder [1]. - The investment firm received an exemption from the SEC to delay the filing of its position, allowing for the accumulation of more shares prior to the public announcement [2]. Group 2: Company Background - Hertz emerged from Chapter 11 bankruptcy in 2021 and has faced challenges, including a significant loss of $2.9 billion for the year 2024, which included a $245 million loss on the sale of electric vehicles in the fourth quarter [3]. - The company had heavily invested in all-electric vehicles, particularly Teslas, which resulted in substantial financial losses due to a decline in their residual values [3].