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Why investors are cheering Ackman's sale of CP shares

Pershing Square Capital Management unloaded about a third of its investment in Canadian Pacific Railway Ltd. – and so far, rail investors seem to like the news: CP shares touched $150 in early trading on Friday, up about $2 and near a record high.

When a smart, plugged-in investor unloads a position in a company, the move often sends up a caution signal for the stock. If the smart investor can’t see much upside, why would anyone else?