Bill Ackman, Pershing Square Capital Management CEO, speaking at the Delivering Alpha conference in New York City on Sept. 28, 2023.
Adam Jeffery | CNBC
Pershing Square’s Bill Ackman is set to offer a new investment vehicle listed on the New York Stock Exchange, aiming to leverage his following among Main Street investors.
The hedge fund billionaire is planning to launch a closed end fund, investing in 12 to 24 large-cap, investment grade, “durable growth” companies in North America, according to a regulatory filing. There will be no minimum investment.
Unlike traditional hedge funds that typically charge a 2% management fee on the total assets under management plus a performance fee of 20% of the fund’s profits, Ackman’s new fund doesn’t have a performance fee in place. Ackman is waiving the management fee for the first 12 months and after the first year will charge a flat 2% fee.
“The Adviser believes that the Fund has the potential to be one of the largest, if not the largest, listed closed-end funds and expects that the Adviser’s brand-name profile and broad retail following will drive substantial investor interest and liquidity in the secondary market,” Ackman said in the filing.
A spokesperson at Pershing Square declined to comment beyond the filing.
Ackman has become one of the world’s most prominent hedge fund investors after years of market-topping returns and vocal activist campaigns. He also gained a wide following on social media platform X with 1.2 million followers, commenting on issues ranging from antisemitism to the presidential election.
The popular investor’s hedge fund held only seven stocks at the end of 2023, including Alphabet, Chipotle Mexican Grill and Howard Hughes Corporation. It posted a 26.7% gain last year.
Pershing Square had more than $18 billion in assets under management as of the end of January.
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