Renowned hedge fund manager Bill Ackman, founder of Pershing Square, is poised to introduce a novel investment opportunity targeting Main Street investors. The billionaire investor is set to launch a closed-end fund listed on the New York Stock Exchange, aiming to tap into his widespread appeal among retail investors.
According to a regulatory filing, Ackman's closed-end fund will focus on investing in 12 to 24 large-cap, investment-grade companies in North America with a focus on "durable growth." Notably, there will be no minimum investment requirement, making it accessible to a broad range of investors.
In a departure from the traditional fee structures associated with hedge funds, Ackman's new fund will not impose a performance fee. For the initial 12 months, the seasoned investor will waive the management fee, and thereafter, a flat 2% fee on total assets under management will be implemented.
In the regulatory filing, Ackman expressed confidence in the fund's potential, stating, "The Adviser believes that the Fund has the potential to be one of the largest, if not the largest, listed closed-end funds." He anticipates that the combination of his brand's strong profile and extensive retail following will generate significant investor interest and liquidity in the secondary market.
While a Pershing Square spokesperson declined to provide additional comments beyond the regulatory filing, Ackman's reputation as a prominent hedge fund investor is well-established. Over the years, he has garnered attention for delivering market-topping returns and engaging in vocal activist campaigns. He boasts a substantial following on social media, with 1.2 million followers on Platform X, where he comments on a range of issues, from antisemitism to presidential elections.
Pershing Square's hedge fund, managed by Ackman, maintained a concentrated portfolio of just seven stocks at the close of 2023, including notable holdings in Alphabet, Chipotle Mexican Grill, and Howard Hughes Corporation. The fund posted a commendable 26.7% gain in the previous year.
As of January 2024's end, Pershing Square oversees assets exceeding $18 billion, underscoring Ackman's standing in the financial industry. The move to introduce a closed-end fund aligns with his strategy to attract Main Street investors, leveraging his established reputation and broad retail following. The development is poised to reshape investment opportunities for a wider audience, further solidifying Ackman's influence in the financial landscape.
