Why Bill Ackman’s Exit is Actually Great News for the Hertz Short Squeeze
As we all know, Hertz ($HTZ) is currently at the beginning of a massive short squeeze with immense potential. However, today’s news regarding Bill Ackman’s Pershing Square liquidating its position temporarily halted the upward momentum. The stock is currently sitting at $2.60, after hitting a high of $2.95 and dipping to a low of $2.45.
But contrary to what many believe, Ackman’s selling did not happen today, and it is not what paused the squeeze. According to the report, his fund actually liquidated its position throughout July. This massive sell-off—accounting for a staggering 20% stake in the company—is almost certainly what artificially dragged the stock down to its unnatural bottom of $1.50 in the first place.
Therefore, the brief pause in $HTZ’s momentum today wasn't caused by actual selling pressure from Ackman, but rather by panic-selling from retail investors fearing a massive dump. This is a classic case of "sell the rumor, buy the news" rather than a data-backed risk. This is exactly why the stock has already recovered back to $2.60, leaving the runway clear for the short squeeze to resume in full force.
So, why is Bill Ackman’s exit actually a blessing in disguise for the short squeeze?
In my opinion, if Ackman were still holding, he would have likely used a rally into the $5–$8 range to cut his losses and dump his shares. A single entity dumping a 20% stake mid-squeeze would have completely crushed the momentum and handed a massive victory to the shorts. Now that his position is entirely cleared, that catastrophic selling threat is completely off the table. The squeeze is now fundamentally safer, cleaner, and has a much higher ceiling.
Disclosure: I hold 4,200 shares, averaged down across 4 entry points below the current price.