Distressed Debt Investing: Pershing Square 2Q 2010 Letter

Here is Pershing Square's 2Q 2010 Letter to Investors. See below for some commentary:

I have been following the Landry's Restaurant situation with earnest, as I have been looking at some of their debt securities. Mick McGuire strikes again.
ADP: I have spent a lot of time on this one as well. In my opinion, undervalued, but not enough to get me allocating any more than a small bit of capital.
Very much like how they phrase their upside downside bets: "In light of this greater risk, we require the potential for a materially greater reward if we are successful, and we size the investments appropriately. Depending upon the risk of loss, these investments may individually comprise a few percent or less of capital, and often less than one percent of the portfolio. "
Interesting to see them being long protection in BP versus Whitney Tilson, who in the past has invested in similar situations to Pershing, being long the stock. Yes different capital structures - but reading the thesis doesn't look good for the equity.
Peter Cooper Village: This is going to be such an interesting case study - The bankruptcy proceedings have been fascinating up to this point and with Pershing Square's involvement will only get better (no position at this time).
As always, I am always impressed with Bill Ackman's writing. Great read.

Distressed Debt Investing