HHH - East 72 - Pershing Square: Staring Into The Abyss Was No Bad Thing
2024-02-04 09:35:00 ET
Summary
- PSH is especially interesting having compiled a strong stretch of performance since staring into the abyss in 2016-17, but still trading at above a 30% discount to NAV.
- From 2015-2018, PSH racked up four successive down years losing a cumulative 34.4% of NAV, against an S&P500 index return over the same period.
- Our main concern is ensuring the largest shareholder and manager keeps his eye on the ball amidst other distractions.
The following segment was excerpted from this fund letter.
Pershing Square Holdings ( PSHZF )
Pershing Square Capital Management (PSCM), the investment management company established by William A. Ackman in 2003, has always had a significant profile, arising from its methodology and the highly confident nature of its founder. In the nine years between 2004-2012 PSCM compiled a net return of 20.4% per annum. Believing - quite rightly - that the concentrated style of investment undertaken by the firm would benefit from permanent, rather than semi-open- ended capital, Pershing Square Holdings (PSH) was launched at end 2012 and IPO'd in October 2014 at a price of $25 per share....
East 72 - Pershing Square: Staring Into The Abyss Was No Bad Thing