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Bill Ackman has grown Pershing Square Capital Management to more than $16 billion from $54 million since he founded the fund nearly two decades ago. The 57-year-old activist investor speaks with On The Money about his return to office policy, his possible presidential picks and why hes still bullish on New York City.

Lydia: You are among the big names on Wall Street who didn’t move to Florida. Why?

Bill: The short answer is that I love New York City. My desire to be successful is founded on a desire to be independent. It always seemed crazy to me to sacrifice that independence to save money on taxes. If you make $100 million some people in finance make even more than that you can save $25 million of that by living somewhere cheaper.

Some people choose to manage their lives that way. I do think it’s incumbent upon New York City to make this a desirable place to live and we have to make it an attractive place to do business. If one super wealthy person leaves the city thats really bad for the revenue. I dont think it’s smart to push taxes higher I think that would actually generate less revenue.

Lydia: There have been some top players in finance like Ken Griffin who have made a show of moving to Miami and talking about how smart it is for their business. But do you think that trend will be reversed? Will we see a lot of headlines in the next year about people moving back?

Bill: I think it’s a great thing that [Citadel founder] Ken Griffin is building a major campus, if you will, in New York City on Park Avenue. I think thats an amazing thing for NYC whether it’s his primary office or not, and it speaks to the fact that a lot of the youngest, most talented people want to be here. My nephew graduated from Harvard and many of his classmates moved here even before they had a job. The city is still a big draw for young people and if this is where the talented, young people want to be, then the companies will have to have a major presence here.

Lydia: Given the younger generation wants flexibility, is it realistic to expect people to return to the office five days a week? On the flip side, can New York City flourish if you dont have people back in Midtown and back in office buildings?

Bill: Everyone wants more flexible work whether its a school play, a sports game you dont want to miss and we have technology that lets you do that. What weve done at Pershing Square is bring people back five days a week 10 months a year. Of course if theres something you need to do like a doctors appointment or working from home one day, use your best judgment. And then we give people July and August to work from anywhere with the caveat that if there’s something where we need to bring everyone together, you show up. Weve experimented with that for two years and thats worked well, people like the balance, and it works for our business.

Lydia: And you believe New York will still be a place where businesses want to operate? 

Bill: I think if NYC became an unsafe place the images you see of San Francisco where you have open air drug users lying on the street that would be very damaging and could be a tipping point for people leaving the city.

You have to manage the city and its population effectively. In San Francisco you have homeless people acting in a threatening and hostile way thats led to the emptying out and death spiral of San Francisco. Again you want to manage a city so that it is pro-business and pro-resident and you want to show care for people who are less fortunate, but that doesnt mean they can defecate on the street and threaten parents or kids.

Lydia: Is NYC poised to go into that kind of death spiral?

Bill: No, I dont think so. We have a mayor who has for obvious reasons respect for the police force and I think they respect him. I think thats really important. The whole defunding the police movement was not a good one. Bail reform went too far. If you believe the statistic, it’s several hundred people committing the vast majority of street crime and those people should be locked up.

Lydia: The new movie Dumb Money and the meme stock craze clearly a cautionary tale of a short bet gone wrong. What do you make of that film?

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Bill: We are among the most famous short sellers but thats because we shorted two stocks in the last twenty years. One short theres a movie about Herbalife [Betting on Zero] and the other short theres a book about MBIA [Confidence Game]. But we dont short stocks for precisely the reason you say. We gave up that business a long time ago because its too risky. Even when youre right you can lose a lot of money. Of course, short sellers can do amazing research.

Lydia: Youve publicly applauded the work Hindenburg has done on Carl Icahns firm. How are you thinking about Icahn now? Do you think the report captured whats going on at his firm?

Bill: What Hindenburg said has been proven out.

Lydia: Youve expressed support for a lot of different 2024 presidential candidates. Anyone else you plan to support? 

Bill: Id love Jamie Dimon to be president but hes made it clear hes not going to run. Id love for a candidate of his quality to run. I think Biden-Trump part II is not the best option for America. It would be great for us to be brought together by a more centrist candidate that members of both parties can vote for. 

Lydia: What about Vivek or RFK Jr. youve tweeted support for?

Bill: Id like to see multiple alternatives. Ive been supportive of Vivek because I know him and hes super smart and capable. I wish he was a more centrist candidate. Ive not yet met RFK but hopefully will have an opportunity to do so. But I still havent found my ideal candidate. Biden should step aside and that would create a flurry of alternative candidates. People are afraid to run against the president and I think theres some possibility of that happening.

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Politics

Starmer says ‘US is right’ about UK and Europe needing to take more responsibility for defence

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Starmer says 'US is right' about UK and Europe needing to take more responsibility for defence

Sir Keir Starmer has said the United States “is right” about the UK and Europe needing to take more responsibility for defence and security.

The prime minister, speaking at the Scottish Labour conference in Glasgow on Sunday, said he is clear Britain “will take a leading responsibility” in protecting the continent.

“Instability in Europe always washes up on our shores,” he said.

“And this is a generational moment. I’ve been saying for some time that we Europeans – including the United Kingdom – have to do more for our defence and security. The US is right about that.”

He added “we can’t cling to the comforts of the past” as it is “time to take responsibility for our security”.

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Donald Trump sparked an emergency meeting of European leaders this week after he said European NATO members should spend more on defence, while the US should spend less.

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Sir Keir has said he will set out a path for the UK to spend 2.5% of GDP on defence, up from the current 2.3%, but has not indicated when that will be.

It is believed he may announce the details when he visits Mr Trump in Washington DC on Thursday, bringing forward the announcement that was expected in the spring when a defence spending review is published.

The prime minister reiterated the UK will “play our role” if required in Ukraine following a peace agreement after he earlier this week said the UK would send troops to be part of a peacekeeping force.

Pic: AP
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Sir Keir will meet Donald Trump in the White House on Thursday. Pic: AP

However, his comments caused a row with Germany and Italy who said it was premature to commit to boots on the ground, although France agreed with the UK.

Sir Keir said: “As we enter a new phase in this conflict, we must now deepen our solidarity even further.”

He added: “There can be no discussion about Ukraine without Ukraine.

“And the people of Ukraine must have long-term security.”

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This week has seen US officials meet their Russian counterparts in Saudi Arabia to discuss Ukraine – which has been met with indignation by Ukrainian President Volodymyr Zelenskyy as none of his team were invited.

No Europeans were invited either, sparking concern the US is pandering to Vladimir Putin.

Sir Keir has promised Mr Zelenskyy he will make the case for safeguarding Ukraine’s sovereignty when he meets with Mr Trump, who has called the Ukrainian president a dictator.

Mr Trump also said Sir Keir and French President Emmanuel Macron, who will visit the White House too this week, “haven’t done anything” to end the war.

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Sports

‘It ain’t over yet’: Why Mookie Betts was dead set on returning to shortstop

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'It ain't over yet': Why Mookie Betts was dead set on returning to shortstop

GLENDALE, Ariz. — Sometime around mid-August last year, Mookie Betts convened with the Los Angeles Dodgers‘ coaches. He had taken stock of what transpired while he rehabbed a broken wrist, surveyed his team’s roster and accepted what had become plainly obvious: He needed to return to right field.

For the better part of five months, Betts had immersed himself in the painstaking task of learning shortstop in the midst of a major league season. It was a process that humbled him but also invigorated him, one he had desperately wanted to see through. On the day he gave it up, Chris Woodward, at that point an adviser who had intermittently helped guide Betts through the transition, sought him out. He shook Betts’ hand, told him how much he respected his efforts and thanked him for the work.

“Oh, it ain’t over yet,” Betts responded. “For now it’s over, but we’re going to win the World Series, and then I’m coming back.”

Woodward, now the Dodgers’ full-time first-base coach and infield instructor, recalled that conversation from the team’s spring training complex at Camelback Ranch last week and smiled while thinking about how those words had come to fruition. The Dodgers captured a championship last fall, then promptly determined that Betts, the perennial Gold Glove outfielder heading into his age-32 season, would be the every-day shortstop on one of the most talented baseball teams ever assembled.

From November to February, Betts visited high school and collegiate infields throughout the L.A. area on an almost daily basis in an effort to solidify the details of a transition he did not have time to truly prepare for last season.

Pedro Montero, one of the Dodgers’ video coordinators, placed an iPad onto a tripod and aimed its camera in Betts’ direction while he repeatedly pelted baseballs into the ground with a fungo bat, then sent Woodward the clips to review from his home in Arizona. The three spoke almost daily.

By the time Betts arrived in spring training, Woodward noticed a “night and day” difference from one year to the next. But he still acknowledges the difficulty of what Betts is undertaking, and he noted that meaningful games will ultimately serve as the truest arbiter.

The Dodgers have praised Betts for an act they described as unselfish, one that paved the way for both Teoscar Hernandez and Michael Conforto to join their corner outfield and thus strengthen their lineup. Betts himself has said his move to shortstop is a function of doing “what I feel like is best for the team.” But it’s also clear that shouldering that burden — and all the second-guessing and scrutiny that will accompany it — is something he wants.

He wants to be challenged. He wants to prove everybody wrong. He wants to bolster his legacy.

“Mookie wants to be the best player in baseball, and I don’t see why he wouldn’t want that,” Dodgers manager Dave Roberts said. “I think if you play shortstop, with his bat, that gives him a better chance.”


ONLY 21 PLAYERS since 1900 have registered 100 career games in right field and 100 career games at shortstop, according to ESPN Research. It’s a list compiled mostly of lifelong utility men. The only one among them who came close to following Betts’ path might have been Tony Womack, an every-day right fielder in his age-29 season and an every-day shortstop in the three years that followed. But Womack had logged plenty of professional shortstop experience before then.

Through his first 12 years in professional baseball, Betts accumulated just 13 starts at shortstop, all of them in rookie ball and Low-A from 2011 to 2012. His path — as a no-doubt Hall of Famer and nine-time Gold Glove right fielder who will switch to possibly the sport’s most demanding position in his 30s — is largely without precedent. And yet the overwhelming sense around the Dodgers is that if anyone can pull it off, it’s him.

“Mookie’s different,” third baseman Max Muncy said. “I think this kind of challenge is really fun for him. I think he just really enjoys it. He’s had to put in a lot of hard work — a lot of work that people haven’t seen — but I just think he’s such a different guy when it comes to the challenge of it that he’s really enjoying it. When you look at how he approaches it, he’s having so much fun trying to get as good as he can be. There’s not really any question in anyone’s mind here that he’s going to be a very good defensive shortstop.”

Betts entered the 2024 season as the primary second baseman, a position to which he had long sought a return, but transitioned to shortstop on March 8, 12 days before the Dodgers would open their season from South Korea, after throwing issues began to plague Gavin Lux. Almost every day for the next three months, Betts put himself through a rigorous pregame routine alongside teammate Miguel Rojas and third-base coach Dino Ebel in an effort to survive at the position.

The metrics were unfavorable, scouts were generally unimpressed and traditional statistics painted an unflattering picture — all of which was to be expected. Simply put, Betts did not have the reps. He hadn’t spent significant time at shortstop since he was a teenager at Overton High School in Nashville, Tennessee. He was attempting to cram years of experience through every level of professional baseball into the space allotted to him before each game, a task that proved impossible.

Betts committed nine errors during his time at shortstop, eight of them the result of errant throws. He often lacked the proper footwork to put himself in the best position to throw accurately across the diamond, but the Dodgers were impressed by how quickly he seemed to grasp other aspects of the position that seemed more difficult for others — pre-pitch timing, range, completion of difficult plays.

Shortly after the Dodgers defeated the New York Yankees to win their first full-season championship since 1988, Betts sat down with Dodgers coaches and executives and expressed his belief that, if given the proper time, he would figure it out. And so it was.

“If Mook really wants to do something, he’s going to do everything he can to be an elite, elite shortstop,” Dodgers general manager Brandon Gomes said. “I’m not going to bet against that guy.”


THE FIRST TASK was determining what type of shortstop Betts would be. Woodward consulted with Ryan Goins, the current Los Angeles Angels infield coach who is one of Betts’ best friends. The two agreed that he should play “downhill,” attacking the baseball, making more one-handed plays and throwing largely on the run, a style that fit better for a transitioning outfielder.

During a prior stint on the Dodgers’ coaching staff, Woodward — the former Texas Rangers manager who rejoined the Dodgers staff after Los Angeles’ previous first-base coach, Clayton McCullough, became the Miami Marlins‘ manager in the offseason — implemented the same style with Corey Seager, who was widely deemed too tall to remain a shortstop.

“He doesn’t love the old-school, right-left, two-hands, make-sure-you-get-in-front-of-the-ball type of thing,” Woodward said of Betts. “It doesn’t make sense to him. And I don’t coach that way. I want them to be athletic, like the best athlete they can possibly be, so that way they can use their lower half, get into their legs, get proper direction through the baseball to line to first. And that’s what Mookie’s really good at.”

Dodger Stadium underwent a major renovation of its clubhouse space over the offseason, making the field unusable and turning Montero and Betts into nomads. From the second week of November through the first week of February, the two trained at Crespi Carmelite High School near Betts’ home in Encino, California, then Sierra Canyon, Los Angeles Valley College and, finally, Loyola High.

For a handful of days around New Year’s, Betts flew to Austin, Texas, to get tutelage from Troy Tulowitzki, the five-time All-Star and two-time Gold Glove Award winner whose mechanics Betts was drawn to. In early January, when wildfires spread through the L.A. area, Betts flew to Glendale, Arizona, to train with Woodward in person.

Mostly, though, it was Montero as the eyes and ears on the ground and Woodward as the adviser from afar. Their sessions normally lasted about two hours in the morning, evolving from three days a week to five and continually ramping up in intensity. The goal for the first two months was to hone the footwork skills required to make a variety of different throws, but also to give Betts plenty of reps on every ground ball imaginable.

When January came, Betts began to carve out a detailed, efficient routine that would keep him from overworking when the games began. It accounted for every situation, included backup scenarios for uncontrollable events — when it rained, when there wasn’t enough time, when pregame batting practice stretched too long — and was designed to help Betts hold up. What was once hundreds of ground balls was pared down to somewhere in the neighborhood of 35, but everything was accounted for.


LAST YEAR, BETTS’ throws were especially difficult for Freddie Freeman to catch at first base, often cutting or sailing or darting. But when Freeman joined Betts in spring training, he noticed crisp throws that consistently arrived with backspin and almost always hit the designated target. Betts was doing a better job of getting his legs under him on batted balls hit in a multitude of directions. Also, Rojas said, he “found his slot.”

“Technically, talking about playing shortstop, finding your slot is very important because you’re throwing the ball from a different position than when you throw it from right field,” Rojas explained. “You’re not throwing the ball from way over the top or on the bottom. So he’s finding a slot that is going to work for him. He’s understanding now that you need a slot to throw the ball to first base, you need a slot to throw the ball to second base, you need a slot to throw the ball home and from the side.”

Dodgers super-utility player Enrique Hernandez has noticed a “more loose” Betts at shortstop this spring. Roberts said Betts is “two grades better” than he was last year, before a sprained left wrist placed him on the injured list on June 17 and prematurely ended his first attempt. Before reporting to spring training, Betts described himself as “a completely new person over there.”

“But we’ll see,” he added.

The games will be the real test. At that point, Woodward said, it’ll largely come down to trusting the work he has put in over the past four months. Betts is famously hard on himself, and so Woodward has made it a point to remind him that, as long as his process is sound, imperfection is acceptable.

“This is dirt,” Woodward will often tell him. “This isn’t perfect.”

The Dodgers certainly don’t need Betts to be their shortstop. If it doesn’t work out, he can easily slide back to second base. Rojas, the superior defender whose offensive production prompted Betts’ return to right field last season, can fill in on at least a part-time basis. So can Tommy Edman, who at this point will probably split his time between center field and second base, and so might Hyeseong Kim, the 26-year-old middle infielder who was signed out of South Korea this offseason.

But it’s clear Betts wants to give it another shot.

As Roberts acknowledged, “He certainly felt he had unfinished business.”

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Technology

Substack boosts video capabilities amid potential TikTok ban

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Substack boosts video capabilities amid potential TikTok ban

Rafael Henrique | SOPA Images | AP

After posting almost 200 videos, amassing hundreds of thousands of followers and racking up millions of views, Carla Lalli Music is quitting YouTube. Substack is her new focus. 

Music is a cookbook author and food content creator, and she is shifting her focus to Substack, a subscription platform that lets creators charge users subscriptions for access to their content. Music told CNBC she came to that decision after earning more in one year of using Substack, nearly $200,000 in revenue, than she did by posting videos on YouTube since 2021. 

Music is the exact kind of content creator that Substack is trying to lure to its platform as TikTok’s future in the U.S. remains in limbo. 

San Francisco-based Substack launched in 2017 as a tool for newsletter writers to charge readers a monthly fee to read their content. The platform allows creators to connect to their followers directly without having to navigate algorithmic models that control when their content is shown, as is the case on TikTok, Google’s YouTube and other social platforms. Substack has raised about $100 million, most recently at a post-money valuation of more than $650 million, the company told CNBC.

This year, Substack has broadened its focus beyond newsletters, and on Thursday, it announced that creators can now post video content directly through the Substack app and monetize these videos.

“There’s going to be a world of people who are much more focused on videos,” Substack Co-founder Hamish McKenzie told CNBC. “That is a huge world that Substack is only starting to penetrate.”

Substack began this push after the social media landscape was thrown into flux as a result of the effective ban of TikTok in January that caused the popular Chinese-owned service to go offline for a few hours. TikTok was also removed from Apple and Google’s app stores for nearly a month. 

The disruption to TikTok in January happened as a result of a law signed by former President Joe Biden to force a sale of the Chinese-owned app or have it effectively banned in the U.S. On his first day in office, President Donald Trump signed an executive order extending TikTok’s ability to operate in the U.S., but that order expires on April 5. 

Days after TikTok went offline, Substack launched a $20 million fund to court creators to its platform.

“If TikTok gets banned for political reasons, there’s nothing to do with the work you’ve done, but it really affects your life,” McKenzie said. “The only and surefire guard against that is if you don’t place your audience in the hands of some other volatile system who doesn’t care about what happens to your livelihood.”

Moving beyond newsletters

McKenzie says that they are going after creators on competing social media platforms to start sharing their video content on Substack.

“Video-first creators, people who are mobile oriented, there’s a whole lot of new possibility waiting to be unlocked once they meet this model in the right place,” McKenzie said. 

Already, Substack has more than 4 million paid subscriptions with over 50,000 creators who make money on the platform, the company said. Substack says that 82% of its top 250 revenue-generating creators have already integrated audio or video into their content, reflecting a growing emphasis on multimedia content.

Prior to the video announcements, Substack allowed creators to post videos on the app to Notes, which is the platform’s front-facing feed format. But the feature did not allow creators to publish video content behind Substack’s paywalls. 

The update enables creators to put video content behind a paywall and it provides data on estimated revenue impact. It also allows them to track viewership and new subscribers.

Carla Lalli Music is a cookbook writer and food creator.

Carla Lalli Music

Our base case for TikTok is that it gets banned in the U.S.: Lead Edge Capital's Mitchell Green

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