Pershing Square Holdings

[weijian]

So even Bill Ackman's PSH (closed end fund listed on LSE) is at a ~30% discount to NAV, where the NAV is marked to market.

Liquidation value of any closed end fund will probably warrant a ~5-10% discount to NAV due to taxes/liquidation costs etc.

But when even Bill Ackman a star manager, operates a closed end fund that trades at ~30% discount to NAV, NAV is not reality. Mr Market's discount is reality. So if Ackman deserves a 30% discount, then most less-known/capable ones probably do deserve their 50% discount.

Overview of 2023 Performance

PSH’s discount to NAV narrowed by 4.5% from 33.2% in the beginning of 2023 to 28.7% at year end, and has narrowed further to 27.0% thus far in 2024(3)

https://assets.pershingsquareholdings.co...tation.pdf

[EnSabahNur]

I assume the title of this thread is a typo and not an opinion on its future prospects

[weijian]

I assume the title of this thread is a typo and not an opinion on its future prospects

hi EnSabahNur,
Nice punt that made my day. Correction has been made.

[EnSabahNur]

Bill Ackman is trying to IPO his Pershing Square but is pausing the process, possibly because demand isn't what he anticipated.

https://www.ft.com/content/0d6426ac-bc58...c34087240b

There is a very telling line in the article

“We believe that the most important factor for creating long-term value for Pershing Square Inc is not the size of the PSUS IPO, but how it trades in the market,” Ackman wrote in the letter. “This transaction is therefore all about a successful IPO from the first day and successful trading at a premium thereafter.”

He added: “We believe that US retail will be huge source of after-market demand.”


One of the posts in the Comments section:

He added: “We believe that US retail will be huge source of after-market demand.”
"US retail" is slang for "dumb money". And you'd have to be pretty dumb to put money with this guy. And "aftermarket demand" in this case means "poor fools you can unload your shares on after the IPO hype has faded." He is so contemptuous of the little guy that he doesn't even bother to disguise what he's doing.


Make of it what you will.

[weijian]

Bill Ackman's current non US listed closed end fund PSH is currently trading at ~25-30% discount to NAV. For this US IPO, no way he will be selling at a discount to NAV (if any), so he probably needs to weave some magic for a good price.

The delay means there is no magic generated by his fame or animal spirits, the latter symbolized by the 2021 SPAC craze. Either he and his LPs need to temper their expectations, OR wait for a new generation who have no memories of the 2021 SPAC craze.

[EnSabahNur]

The delay means there is no magic generated by his fame or animal spirits, the latter symbolized by the 2021 SPAC craze. Either he and his LPs need to temper their expectations, OR wait for a new generation who have no memories of the 2021 SPAC craze.

I was going to say that will be a long wait. Sadly though, I do not think that will be the case