Hedge fund mogul Bill Ackman is looking to meet individual American investors where they are with his next investment fund.
The Pershing Square USA Ltd. fund – which still awaits regulatory approval – is set to be listed on the New York Stock Exchange under the ticker PSUS.
Structured as a closed-end fund, it aims to invest in a mix of 12 to 24 large-cap and "durable growth" core holdings focused on the North American market, according to a prospectus filed with the SEC.
Ackman has built a reputation for achieving market-beating returns by running concentrated portfolios. The star investment manager’s hedge fund, Pershing Square Capital Management, ended last year with a 26.7% return, while holding only seven stocks, including Google parent Alphabet, Chipotle Mexican Grill and Universal Music Group.
While it posted a loss of 8.8% in 2022, the fund still managed to beat the market as the S&P 500 suffered a near-20% drawdown for the year.
"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," the filing says.
While hedge funds have typically come with a 2-and-20 fee structure – a 2% management fee charged on assets invested and a 20% fee on profits a given fund generates – Ackman says he will be waiving the management fee for his Main Street fund during its first year, after which a 2% fee will be charged annually.
As noted by the Wall Street Journal, a similar fund, Pershing Square Holdings, is also available to investors across the pond via European stock exchanges. Just over three years ago, Ackman launched Pershing Square Tontine Holdings in a high-profile SPAC IPO that drew $4 billion from investors. That SPAC was poised to gain a minority stake in Universal Music Group at one point, but the deal fell through in the face of opposition from the SEC.
Ackman's net worth stands at approximately $4.2 billion according to Forbes, making him the world’s 698th richest person.
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