Investing.com -- Shares of Hertz (NASDAQ: HTZ) soared 20% following the news that Bill Ackman’s Pershing Square Capital Management disclosed a significant stake in the car rental company. The hedge fund revealed ownership of 12.7 million shares in an amended 13F filing, representing an investment worth approximately $46.5 million.

The surge in stock price comes as investors react to Pershing Square’s vote of confidence in Hertz, suggesting a bullish outlook on the company’s future performance. The move by Ackman’s firm is notable given Pershing Square’s reputation for actively engaging with its investments to unlock shareholder value.

The disclosure of the stake by Pershing Square is a key driver behind the stock’s impressive rally. Institutional investments of this magnitude often signal to the market that the investor sees long-term potential in the company’s business model and growth prospects.