Ackman apos;s Pershing Square Reaps 2.7 Bln From Rate Trade But Down 9 ...
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| - | By Nell Mackenzie<br> LONDON, Feb 10 (Reuters) - Billionaire investor William Ackman's Pershing Square fund reaped $2.7 billion on interest rate trades in 2022, but not enough to plug losses and the fund finished the year down almost 9%, according to an investor presentation seen by Reuters.<br> U.S.<br><br>stock indexes had a dismal 2022 with the S&P 500 slumping almost 20%, as the Federal Reserve battled soaring inflation with aggressive interest rate hikes that roiled markets.<br> Pershing Square Capital Management in 2022 lost 8.8% of its net asset value its worst result since 2016, while its share price fell 14.6%, the presentation dated Feb.<br><br>9 showed.<br> The assets minus the liabilities in Ackman's fund trade at a discount to its share price. The fund may consider moving its listing from Europe to the United States to remedy this, a Jefferies analyst note said on Friday.<br> "It would likely offer a very good chance of materially narrowing the discount, given the nexus for the fund and manager has always been the U.S. anyway," said the Jefferies note.<br> "This possibility is also something that we do not feel is currently reflected in PSH's share price," it said.<br> The contents of the presentation were reported by Institutional Investor on Thursday.<br> Pershing Square traditionally holds a smaller number of investments.<br><br>Stock positions in companies such as Lowe's , Netflix, Chipotle Mexican Grill, Domino's Pizza, Hilton and Universal Music Group detracted from positive performance elsewhere, the note said.<br> A performance fee was not charged by Pershing Square Holdings in 2022, the presentation said.<br> Positions in Netflix and Domino's Pizza were sold in order to free up capital for new opportunities, said the presentation.<br> Interest rate protection in the form of derivatives known as swaptions, a bet on volatility in rates markets, the fast food company Restaurant Brands International, | + | By Nell Mackenzie<br> LONDON, EvDEN evE NaKliyAt Feb 10 (Reuters) - Billionaire investor William Ackman's [https://pioneeringhub.com/ Pershing Square] fund reaped $2.7 billion on interest rate trades in 2022, but not enough to plug losses and the fund finished the year down almost 9%, according to an investor presentation seen by Reuters.<br> U.S.<br><br>stock indexes had a dismal 2022 with the S&P 500 slumping almost 20%, as the Federal Reserve battled soaring inflation with aggressive interest rate hikes that roiled markets.<br> Pershing Square Capital Management in 2022 lost 8.8% of its net asset value its worst result since 2016, while its share price fell 14.6%, the presentation dated Feb.<br><br>9 showed.<br> The assets minus the liabilities in Ackman's fund trade at a discount to its share price. The fund may consider moving its listing from Europe to the United States to remedy this, a Jefferies analyst note said on Friday.<br> "It would likely offer a very good chance of materially narrowing the discount, given the nexus for the fund and manager has always been the U.S. anyway," said the Jefferies note.<br> "This possibility is also something that we do not feel is currently reflected in PSH's share price," it said.<br> The contents of the presentation were reported by Institutional Investor on Thursday.<br> Pershing Square traditionally holds a smaller number of investments.<br><br>Stock positions in companies such as Lowe's , Netflix, Chipotle Mexican Grill, Domino's Pizza, Hilton and Universal Music Group detracted from positive performance elsewhere, the note said.<br> A performance fee was not charged by Pershing Square Holdings in 2022, the presentation said.<br> Positions in Netflix and [https://boinc.multi-pool.info/latinsquares/view_profile.php?userid=82789 EvdeN EVE NakLiyat] Domino's Pizza were sold in order to free up capital for [https://evigetir.com/evdeneve/filomuz.html evdEN evE NAKliyAT] new opportunities, said the presentation.<br> Interest rate protection in the form of derivatives known as swaptions, a bet on volatility in rates markets, the fast food company Restaurant Brands International, energy hedges and share buybacks all retraced losses, the presentation said.<br> The interest rate hedges were initiated in late 2020 and early 2021.<br><br>In 2022 the fund entered new positions in long-term interest rates, currencies and [https://csc.ucad.sn/?option=com_k2&view=itemlist&task=user&id=1737245 eVdEn evE nAkLiyAt] energy it said.<br> The Fed raised rates from near zero in March to a range of 4. When you have almost any issues concerning wherever along with how you can make use of [https://evigetir.com/evdeneve/montaj.html evDeN EvE nAKLiYAT], it is possible to contact us at the web site. 25%-4.5% last year, hiking rates by a further 25 basis points last week.<br> Pershing Square declined to comment.<br><br>(Reporting by Nell Mackenzie; editing by Dhara Ranasinghe and Louise Heavens)<br> |
