Tuesday, January 31, 2023

Pershing Square doubles 2022 loss in December


Bill Ackman’s Pershing Square Holdings declined 4.2% in December, leaving the $12.2bn listed vehicle down 8.8% for 2022.

After spending most of the year in double-digit loss territory, the fund had clawed back ground in October and November before ending the year with a loss last month.

The S&P 500 had mirrored the performance, rising in October and November before falling back in December, ending with a 19.4% annual decline.

The $15.3bn New York manager’s flagship fund backs a small number of large-cap long investments, after Ackman moved away from activist short investing in recent years.

But he is betting the Hong Kong’s longstanding dollar peg will break, in common with other hedge fund managers including Boaz Weinstein. Pershing Square has taken the notional short position through the ownership of put options.

Ackman revealed last month he had increased Pershing’s bet on real estate developer Howard Hughes.

Its largest four holdings are Lowe’s Companies, Chipotle Mexican Grill, Restaurant Brands International and Hilton Worldwide Holdings.

Rival Dan Loeb’s Third Point Investors Limited is down 24.1% for the year to 28 December, the listed fund’s latest figure available.


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