Takeaways from Ackman's road show and IPO filing...
Background: Bill Acman's Pershing Square is launching a publicly traded, open-end fund designed to mimic (ish) the firm's hedge fund strategy.
"Companies" (211 mentions):
The fund will invest in large-cap, publicly traded companies in North America.
"Pershing Square" (126 mentions):
Managed by Pershing Square Capital Management, founded by Bill Ackman in 2003, with a 19% average return.
"Leverage" (113 mentions):
Plans to use leverage to boost returns but acknowledges the increased volatility and risk.
"Fees" (107 mentions):
2.0% annual management fee, no performance fees.
"Ackman" (86 mentions):
Bill Ackman, the CEO and Chairman, has over 32 years in the hedge fund and asset management industry.
"Conflict" (59 mentions):
Pershing Square will continue to manage other funds with more favorable fee structures, which could create allocation conflicts.
"Valuation" (41 mentions):
Unlike other open-end funds with opaque quarterly or annual valuations, this fund will issue weekly NAVs based on public company values.
"Favorable" (35 mentions):
No management fees for the first 12 months.
"Concentration" (16 mentions):
Bets are concentrated in a few companies, which could lead to higher returns but come with more exposure to any single company's problems.
Ps - Ackman originally targeted a $25 billion IPO but has since managed down expectations to $2 billion.
Pps - What's more attractive: a billionaire hedge fund manager with 1.3 million Twitter followers OR a cold storage REIT? Hint: one is at the top of the 2024 IPO league tables; we'll post more on a big recent cold storage IPO later this week.
Read the full Pershing Square IPO here.
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