Billionaire Bill Ackman to open NYSE listed fund for regular investors

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Bill Ackman, CEO of Pershing Square Capital Management, speaks at the Alpha Delivery conference in New York City on September 28, 2023.

Adam Jeffery | CNBC

Pershing Square’s Bill Ackman is to offer a new investment vehicle listed on the New York Stock Exchange, aiming to accelerate its following among Main Street investors.

The hedge fund billionaire plans to launch a closed-end fund, investing in 12 to 24 large-cap, investment-grade, “sustainable growth” companies in North America, according to a regulatory filing. There will be no minimum deposit.

Unlike traditional hedge funds that typically charge a management fee of 2% on the total assets under management and a performance fee of 20% of the fund’s profits, Ackman’s new fund has no performance fee. Ackman waives the management fee for the first 12 months and after the first year charges a flat fee of 2%.

“The Adviser believes the Fund has the potential to be one of the largest, if not the largest, registered closed-end fund and expects the Adviser’s brand image and following to sell widespread investor interest and substantial liquidity in the secondary. market,” Ackman said in the filing.

A spokesman for Pershing Square declined to comment beyond the filing.

Ackman has become one of the world’s most prominent hedge fund investors after years of market-leading products and vocal executive ventures. He also gained a wide following on the social media platform X with 1.2 million followers, commenting on issues from antisemitism to the presidential election.

The popular investor’s hedge fund held just seven stocks at the end of 2023, including Alphabet, Chipotle Mexican Grill and Howard Hughes Corporation. It came out 26.7% last year.

Pershing Square had more than $18 billion in assets under management at the end of January.

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