The car rental industry is a key part of travel and one major investor is betting on Hertz.

According to Reuters.com, Hertz CEO Gil West released a letter to the car rental company¡¯s employees explaining that billionaire Bill Ackman and his investment management company, Pershing Square, purchased a 19.8 percent stake in the car rental brand.

¡°I am humbled, and we should all feel encouraged by Bill Ackman¡¯s comments and energized by the strong support shown by him,¡± West said about Ackman¡¯s investment.

In comments shared on social media, Ackman said he believes in West and his management's efforts to ¡°increase unit revenue and reduce operating cost will significantly improve profit margin over the next several years.¡±

¡°While the tariff announcements have created a near-term cloud over the travel industry ¨C we have low expectations for Hertz¡¯s Q1 and first half results ¨C we believe that over the intermediate term, the company will generate sustainably higher profitability,¡± Ackman continued.

Ackman also added that Hertz¡¯s ¡°capital structure will enable shareholders to generate a highly attractive return on investment.¡±

With the purchase, Pershing's stake in Hertz makes it the second-largest shareholder in the company. The investment sent the car rental company¡¯s shares soaring 44.3 percent on Thursday, with the stock rising more than 125 percent since the start of 2025.

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