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Ackman's hedge fund Pershing Square gains 26.7% in 2023 - investor update

January 02, 2024 at 07:27 pm EST

NEW YORK (Reuters) -Billionaire investor William Ackman's hedge fund Pershing Square Capital Management returned 26.7% last year, beating the broader stock market gains and bouncing back from a loss in the previous year, according to an investor update on Tuesday.

For Ackman's investors, last year's increase returns the hedge fund to form with double digit gains after an interruption in 2022 when fears about interest hikes, runaway inflation and geopolitical flashpoints sent stocks tumbling.

Pershing Square Capital Management lost 8.8% in 2022 but gained 26.9% in 2021, surged 70.2% in 2020 and climbed 58.1% in 2019.

The firm did not say what fueled last year's rise though long-time portfolio company Chipotle Mexican Grill climbed more than 63% while Google parent Alphabet, a position Ackman added to the portfolio last year, rose 55%.

Ackman vowed in 2022 to retire from being a vocal corporate activist pushing change at corporations, but his investment moves, which he often announces on X, continue to be closely followed.

While investors fretted about high inflation and a possible recession at the start of 2023, the stock market powered higher late in the year amid hopes for interest rate cuts as soon as this year.

(Reporting by Svea Herbst-Bayliss; Editing by Sandra Maler and Shri Navaratnam)

Stocks mentioned in the article

Add to a list Add to a list 0 selected To use this feature you must be a member Log in Sign up	Price	Change	5d. change	Capi.
PERSHING SQUARE HOLDINGS, LTD.	48.95 USD	+1.87%	+3.27%	9.01B
CHIPOTLE MEXICAN GRILL, INC.	3,187 USD	+2.41%	+11.08%	87.54B
ALPHABET INC.	172 USD	+10.22%	+11.59%	2,139B

William Ackman

William (Bill) Ackman is the founder and CEO of Pershing Square Capital Management, an American hedge fund that holds shares in Wendy’s International and McDonald’s Corporation. As well it has interest in Target Corp., the second largest discount company in US.

Graduated at Harvard College, he holds also an MBA from Harvard Business School. He began his career working for his father in the real estate, and in 1993 he founded Gotham Partners Management Co. This investment company encounters some troubles including legal problems that will lead to its dissolution in 2003.

In 2004, William Ackman comes back on the financial stage. He has created Pershing Square Capital, and he showed a lot of activism buying massive share in the lowest price for resale in two years maximum. A short-term strategy often criticized by the US Medias. His different attacks against FSA, American division of Dexia, and also against MBIA and Ambac, that it forecast the collapse, earned him a strong enmity in financial world.

In 2007, William Ackman took a share up to 5 millions of dollar (3,5%) in Sears Holdings, third group in distribution sector in US, behind Wal-Mart and Home Depot.

Pershing Square Capital Management manages approximately 2.4 billion of dollar of which 40% was invested in shares of McDonald.

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Pershing Square Capital Management LP Pershing Square Capital Management LP Investment ManagersFinance Pershing Square Capital Management LP (PSCM) is an independent, SEC-registered investment advisor and hedge fund manager headquartered in New York City. The firm was founded in 2003 by William Ackman and David Berkowitz. PSCM provides investment advisory services to a variety of private investment funds.	Chief Executive Officer
Pershing Square Foundation	Founder

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