Pershing Square Holdings returns 26.7% and trades at a discount

  • Bill Ackman’s Pershing Square Holdings outperformed the S&P 500 in 2023
  • The fund returned 26.7% based on its net asset value
  • Shares of the fund are still trading at a 28% discount
  • Some U.S. investors may have difficulty purchasing the fund
  • Eric Boughton of Matisse Capital praises the fund’s long-term track record
  • Ackman has hinted at a possible merger with a U.S. company
  • The fund holds 11 positions and has leverage of about $2 billion
  • The fund’s shares returned 36% in 2023 based on market price
  • Analyst Matt Hose has a Buy rating on the fund
  • The high fee structure is one reason for the fund’s discount

Bill Ackman’s Pershing Square Holdings fund has outperformed the S&P 500 in 2023, returning 26.7% based on its net asset value. The fund’s shares are still trading at a 28% discount, making it an attractive investment opportunity. However, some U.S. investors may face difficulties purchasing the fund due to its overseas listing. Eric Boughton of Matisse Capital praises the fund’s long-term track record and highlights its steady cash distributions and share repurchases. Ackman has hinted at a possible merger with a U.S. company to narrow the discount. The fund holds 11 positions and has leverage of about $2 billion. Analyst Matt Hose has a Buy rating on the fund. One reason for the fund’s discount is its high fee structure, which includes a 1.5% base fee and a 16% incentive fee. Despite this, the fund has generated significant performance fees in recent years. Overall, Bill Ackman’s Pershing Square Holdings fund offers investors the opportunity to benefit from his successful investment strategies.

Public Companies: Pershing Square Capital Management LP (N/A), Alphabet (N/A), Restaurant Brands International (N/A), Hilton Worldwide (N/A), Lowe’s (N/A), Howard Hughes Holdings (N/A), Chipotle Mexican Grill (N/A)
Private Companies:
Key People: Bill Ackman (CEO of Pershing Square Capital Management LP), Eric Boughton (Portfolio Manager at Matisse Capital), Matt Hose (Analyst at Jefferies)

Factuality Level: 7
Justification: The article provides information about Bill Ackman’s investment vehicle, Pershing Square Holdings, and its performance compared to the S&P 500. It also mentions the fund’s discount and the possibility of a merger. The article includes quotes from portfolio managers and analysts, as well as information about the fund’s fee structure and ownership. Overall, the article provides factual information about the fund’s performance and relevant details about its operations.

Noise Level: 3
Justification: The article provides information about Bill Ackman’s investment performance and the performance of Pershing Square Holdings. It also mentions the discount of the fund’s shares to its net asset value and the difficulty for U.S. investors to buy the fund. However, the article lacks in-depth analysis, evidence, and actionable insights. It mainly focuses on the fund’s performance and fee structure without exploring broader trends or consequences.

Financial Relevance: Yes
Financial Markets Impacted: The article discusses the performance of Pershing Square Holdings, a $12 billion closed-end fund that is listed in Europe and trades in the U.S. It provides information on the fund’s returns and its discount to net asset value. It also mentions the possibility of a merger with a U.S. company.

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article primarily focuses on the financial performance of Pershing Square Holdings and does not mention any extreme events.

Reported publicly: www.marketwatch.com