The CEO of Hertz, Gil West, expressed feelings of “humility” after billionaire investor Bill Ackman and his firm, Pershing Square, revealed a sizeable investment in the car rental giant.

In a letter to employees acquired by Reuters, West shared his gratitude and renewed enthusiasm, highlighting Ackman’s supportive remarks as a source of optimism for the entire organization.

The Strategic Decision Behind Ackman’s Investment in Hertz

Ackman recently disclosed that Pershing Square now holds a 19.8% stake in Hertz, making it the second-largest shareholder. He lauded the company’s management initiatives aimed at increasing unit revenue and reducing operating expenses, projecting that these steps will yield sustainable margin improvements in the coming years.

“I believe Gil West and his management team’s efforts will drive significant profitability improvements,” Ackman commented on X.

Despite facing hurdles like tariff announcements that complicate the travel sector’s outlook, Ackman remains optimistic. Although he acknowledged potential weakness in Hertz’s Q1 and first half results, he believes in strong long-term potential, emphasizing the company’s solid capital structure as essential for delivering high returns to shareholders.

As a result of this news, Hertz shares rose by 44.3% on Thursday, marking a gain of over 125% since January 2025.

Key Considerations for Investors in Hertz

Hertz’s transformation under Gil West is accelerating, but investors should ponder its sustainability. For deeper insights:

• SEC Filings – Review Hertz’s latest regulatory reports to understand shifts in financial structure, debts, and shareholder strategies post-Ackman’s investment.

• Price Target Summary – Keep track of updated analyst estimates to see if Hertz’s momentum is projected to continue.