Sad tidings from the hedge fund return unit at Dealbreaker (often first, but in this case shamelessly lifted from Bloomberg):
William Ackman’s hedge fund that invests solely in Target Corp. fell 40.1 percent in January, bringing the loss since inception to 89.5 percent, according to a letter sent to investors.
We love the WA. We are so sad. (Call us, Bill. Seriously).
Ackman’s Pershing Square Target Fund Falls 40.1% in January [Bloomberg]
Too Circuit, didn’t City >>>>>>>>>>>>
My Circuit City Opportunity Short/Long CDS Fund crapped out as well.
that dude always wears so much eyeliner on cnbc
he looks like a chick
that dude always wears so much eyeliner on cnbc
he looks like a chick
that dude always wears so much eyeliner on cnbc
he looks like a chick
that dude always wears so much eyeliner on cnbc
he looks like a chick
too off, didn’t target…
I’m long the Ford Models story on CNBC right now.
I could start a fund with Coca Cola and Altria and kick his ass…pfft Target? really?
What’s the history of Pershing Square IV? I can’t imagine a fund was created purely to invest in Target. Who would pay 2/20 for that? Did he own it in one of the other funds and then sidepocketed this investment?
I’d do a 4-times leveraged Target fund for 1 and 10.
This was their side-pocket (or technically I guess it was a totally separate entity) done with a separate raise and designed exclusively to execute on this trade. It’s basically “all Target, all the time.”
Another graduate of the Jeff Gendell school of management. I expect a “re-launch” any day now.
Why would anyone give money to a fund that solely invests in one company – through equity shares or options, I don’t give a shit – why???
E*Trade babies – thank you!
“Take! These broken wings! And learn to fly again!….”
He was short, right?
Gotham Part II
Believe him once, shame on him, believe him twice, shame on you, beleive him a third time then you’re an f-cking idiot.
IbetIanCummingispissed.
too effete. don’t repeat.
Former Lehman traders strike back!
Ackman, u may have got it right on mbia/ambac, but trying to “monetize” real estate in a massive real estate crash?
BRILLIANT!
@11. They were trying to basically pressure Target ala “shareholder activist”. Something about Target having a unique business model that could be exploited. I think the argument was “HOLY SHIT THEIR REAL ESTATE WILL PAY FOR ITSELF,” with similar results as “HOLY SHIT THE IRAQ WAR WILL PAY FOR ITSELF”. I dunno, I read his presentation many months ago.
why is MER blocking certain dealbreaker stories??
This emperor’s new clothes shit has just gone too far…
A single stock HF? Are you shitting me? Does he have 2/20 going for this?
Why on earth would anyone continue to invest with these hedge fund clowns.
How rich do we have to make these inept motherfuckers?
Don’t they already have Park Avenue apartments, ski condos and a house in Sagaponack?
I cannot believe that this clown is really able to raise money. EP, I luv ya, but you loose cred every time you fawn at this dude.
@26 You “loose” cred every time you post like a moron.
@27
if i cared what you thought about my spelling i wouldn’t have moved your cubicle into the basement.
Don’t shorten “credibility”. You don’t shorten “fertility”. After all, who goes to a “fert” clinic??
I don’t understand. Who is giving this guy money to manage? Is it really managing money if you’re only holding one asset.
@29 (same as @27?)
great call. that really adds something to the discussion.
this guy reminds me of the kids we used to beat up and steal their lunch money.
i suppose now they’re getting even
@29 – Haha. Nice.
@32….stole lunch money? we never stole anyone’s lunch money. you sure you weren’t on the receiving end of that beat-down?
“loose cred” is what got us into this mess. but, you lose cred when you get loose spelling lose.
Ackman doesn’t run money: he launders funds received from his dad’s and his dad’s buddies’ REITs; assume money laundering, and all makes sense.
Anyone see the Jan’11 tgt trade today?
“Posted by guest, Feb 06, 2009 1:27PM
I cannot believe that this clown is really able to raise money. EP, I luv ya, but you loose cred every time you fawn at this dude.”
Our affection for the WA is “return independent.”
fair enough
too Pershing – sounded square
@3
@4
@5
@6
Hit the button once
Look people, if you are going to do the TLDR meme then work with the original material.
“too Pershing – sounded square” is a poor choice compared to:
Too Pershing, didn’t square.
Public humiliation of the intellectually self-righteous… Tasty!
On the plus side, the perf.(ormance) lookthrough is much easier for this fund than Made-off’s.
-C
Too Ackman, didn’t shower
i guess i’ve got no street cred.
Target stock: Perishing.
Hedge strategy: Perishing Squared!
Thank you, thank you very much.
–the Decoder.
@47- Perishing? Your welcome.
damn, i’m an investor in IV. I thought Target was a f’in golf course.
if i recall correctly (big if) people initially speculated this one trick pony fund would be long BUD…I wish they were right.
Ack man, that’s bad performance
You guys made my Friday afternoon. I am glad to see others participating in the War on “Loose”.
so much excitement over a typo! get that guy!!
@10 Looks like it was only 10bps mgt fee, anybody know the performance fee?
Since inception, the Pershing Square IV Fund has outperformed its benchmark, the Fairfield Sigma 3x Leveraged Index, which returned -100% over the same time period.
The Target REIT structure saves Target on taxes, which ultimately increases cash flow to the equity holders. It’s not really about selling real estate to an outside buyer. His plan makes a lot of sense but it hasn’t yet gained traction from mgmt due to the complexity/brain drain required.
He isn’t taking 2 and 20. He is down so much because he’s using long dated options for leverage, and so the value of these things could see massive swings in both directions. Get your facts straight people, the freaking presentation is out there as public record.
@55 – EP said you should call them, not post a comment!
@56 He took a page from Cliff Asness.
Serious Question.
Does he really get 2&20 to buy Target stock on your behalf???
He’s putting in $25m
His management fees for the fund in 2007 were $30m
The fund is currently worth $210m
Anyone else think he’s diluting his investors’ returns?
BTW, we’re still proud of the way you covered your WFC short with WB. Way to go! Too bad you didn’t stick around for the actual revaluation.
@58/others What matters is not the single position (if he made 100%+ on it, ala Buffett’s 1970 WPO, no one would have complained), but that he lost nearly all of the capital. I rather have a manager who knows how to pick one good investment that one who loses all capital in 100 lousy ones.
If I wanted to invest in Target I would buy options or raw stock, is this guy really that stupid? And are there really investors who think this is a brilliant manager with one security? Where can I find the fish that he caught for that stupid idea?
@60 — How is Ackman refusing to diversify out of the equity of a single entity for his entire fund not what matters? I think it is ridiculous and retarded. Why wouldn’t the people interested in the fund simply buy the shit themselves, since Ackman isn’t trading he is just holding long-term…
was bill short aig from january of ’08 until failure. nope. but we were.
35 best financial stories from this weekend so far, plus bailout comedy. all in one link.
2 from Dealbreaker and EP made the cut.
http://bit.ly/CL38
It is amazing how many people spell “lose,” as “loose.” I would say it approaches over 50% from the comments I’ve read. Does it indicate anything about a person’s education or IQ? Probably some, but not much.