>> Mexican food chain Chipotle getting its first real vote of confidence since being battered by food safety issues. Billionaire investor Bill Ackman disclosing a 9.9% stake in the company, saying Chipotle has nowhere to go but up. And sending its shares straight in that direction. But what looks like a match made in heaven has actually been made more in hell, as both parties have suffered through bruising stretches.
Outbreaks of e coli and norovirus last year crushed Chipotle's sales and stock, which has tumbled 42% over the past year. And Ackman sorely in need of a winning bet. His Pershing Square fund down more than 14% for the year, one of the biggest losers among hedge funds, pummelled by losing gambles on Valeant and Herbalife.
Reuters Faya Herbs.>> Ironically, Bill Ackman often performs best after he's had a period of not performing so well at all. And so three years ago when he got out of JC Penney which was a big loser, he made a quick and very successful investment in Air Products.
Where he quickly changed up the board and then exchanged the CEO. So those are all things that we may be seeing here as well.>> It's not the first time the famously health conscious hedgy has invested in fast food, having made previous winning bets on Burger King and McDonald's.
Still, Chipotle's challenges are steep.>> So for example, he's going to have to do more likely on brand management, rather than mergers in acquisitions plays where in the past people who have invested in the restaurants have done some spin offs or some other things. And that may not be available here at Chipotle.
>> One sign he may already be at work, the media friendly Ackman normally pops up in front of a camera after a big stock buy, but this time we haven't heard a peep.