Bill Ackman to launch a NYSE-listed fund for regular investor
Bill Ackman to launch a NYSE-listed fund for regular investor.
The billionaire hedge fund manager is preparing to introduce a closed-end fund, which will focus on investing in 12 to 24 large-cap, investment grade, "durable growth" companies in North America, as outlined in a regulatory filing. The fund will have no minimum investment requirement.
In contrast to traditional hedge funds, which commonly impose a 2% management fee based on the total assets under management along with a 20% performance fee on the fund's profits, Ackman's new fund will not include a performance fee. Initially, Ackman will waive the management fee for the first 12 months, and subsequently, after the initial year, will levy 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," stated Ackman in the filing.
A representative from Pershing Square declined to provide further comment beyond what was disclosed in the filing.
Ackman has risen to prominence as one of the most notable hedge fund investors globally, achieving market-beating returns over the years and engaging in vocal activist campaigns. He has also amassed a significant following on social media platform X, boasting 1.2 million followers, where he addresses various topics ranging from antisemitism to presidential elections.
His hedge fund, a favorite among investors, held positions in only seven stocks by the end of 2023, including Alphabet, Chipotle Mexican Grill, and Howard Hughes Corporation, culminating in a 26.7% gain for the year.
As of the end of January, Pershing Square managed assets totaling more than $18 billion.