Hedge fund billionaire Bill Ackman to launch a NYSE-listed fund for regular investors

Bill Ackman, Pershing Square Capital Management CEO, talking on the Delivering Alpha convention in NYC on Sept. twenty eighth, 2023.

Adam Jeffery | CNBC

Pershing Square’s Bill Ackman is about to provide a new funding car listed on the New York Stock Exchange, aiming to leverage his following amongst Main Street investors.

The hedge fund billionaire is planning to launch a closed end fund, investing in 12 to 24 large-cap, funding grade, “sturdy progress” corporations in North America, in accordance to a regulatory filing. There will probably be no minimal funding.

Unlike conventional hedge funds which usually cost a 2% administration charge on the whole belongings below administration plus a efficiency charge of 20% of the fund’s income, Ackman’s new fund does not have a efficiency charge in place. Ackman is waiving the administration charge for the primary 12 months and after the primary 12 months will cost a flat 2% charge.

“The Adviser believes that the Fund has the potential to be one of many largest, if not the biggest, listed closed-end funds and expects that the Adviser’s brand-name profile and broad retail following will drive substantial investor curiosity and liquidity within the secondary market,” Ackman mentioned within the submitting.

A spokesperson at Pershing Square declined to remark past the submitting.

Ackman has develop into one of many world’s most distinguished hedge fund investors after years of market-topping returns and vocal activist campaigns. He additionally gained a extensive following on social media platform X with 1.2 million followers, commenting on points starting from antisemitism to the presidential election.

The common investor’s hedge fund held solely seven shares on the finish of 2023, together with Alphabet, Chipotle Mexican Grill and Howard Hughes Corp. It posted a 26.7% acquire final 12 months.

Pershing Square had greater than $18 billion in belongings below administration as of the tip of January.

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