Hedge fund manager Bill Ackman / Facebook
It’s been a turbulent year for Bill Ackman’s Pershing Square Capital, but then again, it has been a volatile year in the markets and for investors overall. Pershing Square Capital was down 19.9 percent for the year as of the end of September, but then it gained almost 10 percent in October alone, beating the S&P 500.
But the facts speak for themselves. When the markets are in turmoil it does not matter if you are a bill Ackman, a Warren Buffett or a George Soros. A worldwide financial crisis hurts everyone.
Pershing Square Capital holds $14.77 billion in assets under management. Out of this, its publicly traded hedge fund holds $11.96 billion. The firm has not registered a negative year since 2018. Pershing Square earned $464 million of performance fees in 2021, as well as $146 million in base fees.
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Pershing Square Capital last traded at $32.29.
Universal Music Group helped with the rise in Pershing Square Capital, rising 6% in October. Hilton Worldwide Holdings – another Pershing investment – rose 11 percent in October and Restaurant Brands International gained 9 percent in October.
Barron’s reported that Bill Ackman made about $1.7 billion from a bet that he made expecting higher interest rates – the Fed did raise rates – but his fund also lost $400 million on a Netflix investment that it held for just a few months. Netflix stock recently plummeted.
Also, Pershing Square Tontine Holdings had to return $4 billion of investor capital in July after its planned acquisition of a 10% stake in Universal Music Group (UMGNF), the music publisher, ran into regulatory roadblocks.
Most of Pershing Square’s investment in Universal Music ended up with another Ackman vehicle, Pershing Square HoldingsPSH +1.56% (PSH.Netherlands),
As for Bill Ackman himself, the billionaire investor has been vocal in his support for the Ukrainian people and calls for an end to the Russian occupation of that country.
