Bill Ackman, CEO of Pershing Square Capital Management, speaks at the Delivering Alpha conference in New York City on September 28, 2023.
Adam Jeffrey | CNBC
Pershing Square’s Bill Ackman is set to offer a new investment vehicle listed on the New York Stock Exchange in an effort to attract a following among Main Street investors.
Hedge fund billionaire plans to launch closed fundinvesting in 12 to 24 investment-grade, “long-term growth” large-cap companies in North America, according to normative documents. There will be no minimum investment.
Unlike traditional hedge funds, which typically charge a management fee of 2% of total assets under management plus a performance fee of 20% of the fund’s profits, Ackman’s new fund has no performance fee. Ackman waives management fees for the first 12 months and will charge a flat 2% fee after the first year.
“The Adviser believes the fund has the potential to become one of the largest, if not the largest, listed closed-end fund and expects the Adviser’s brand profile and broad retail network to lead to significant investor interest and liquidity in the secondary market. market,” Ackman said in a statement.
A Pershing Square spokesman declined to comment beyond that.
Ackman became one of the world’s best-known hedge fund investors after years of market gains and vigorous activist campaigns. He has also built a large following on social media platform X, with 1.2 million followers, commenting on topics ranging from anti-Semitism to the presidential election.
At the end of 2023, the popular investor’s hedge fund owned just seven stocks, including Alphabet, Chipotle Mexican Grill and the Howard Hughes Corporation. Last year it showed an increase of 26.7%.
As of the end of January, Pershing Square had more than $18 billion in assets under management.
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