As you know, hedge fund manager Bill Ackman loves himself a good activist investment, particularly if it’s in a place where he can get his lawn mowers, towels, flat screen TVs, and pretzel kegs all for an extremely reasonable price. Unfortunately, while many of his investors support him in this pursuit, some don’t seem to understand how Bill operates. Take Target, for example. The first time he laid eyes on it…I don’t want to say there were tears, but it got emotional. The prices? The layout? That adorable fucking dog? He had to have it- ALL OF IT. Sure, Pershing Square did get involved but it could’ve been faster, bigger, soon. I don’t want to say you blew it for him but…you blew it for him. That’s why Bill’s been thinking and what he’s come up with is that the next time he’s doing one of Sunday morning walkabouts** in a suburban strip mall and stumbles upon his next great love, there can be no hesitation. Which is why Pershing Square proses this.

…raising as much as $3 billion from an initial public offering of a new fund as a way to secure more permanent capital to finance Pershing Square Capital Management’s activist investing. The public offering would be for shares in a new hedge fund that would mirror the firm’s flagship strategy. Ackman is not planning to take the entire firm public, according to people familiar with his thinking. In addition to conversations with investors during the past month, Ackman outlined his desire for obtaining more stable capital in the firm’s May 25 investor letter. A listed fund is one of several options he is said to be considering.

“If we could increase the amount of our capital that is permanent, it would enable us to be more opportunistic during times of market and investor distress, and would also enable us to take larger stakes in a greater number of holdings,” Ackman wrote in the letter…Pershing Square manages about $10 billion, up from $8.6 billion on January 1. In his May investor letter, Ackman notes how much of that sum—about 10% to 15%—must be held in reserve against possible redemption requests. Despite the increase in assets, he is unable to invest as much as he would like given the assets held in reserve.

On a related note? When one is an activist investor, investing in companies in which he deeply believes, one does not have time to hold your hand or have little chats throughout the day. He’ll do it, because that’s just the kind of guy he is, but asking him to do so takes away time that could be spent restocking the shelves of an Egg Harbor Family Dollar, or perhaps just sitting in aisle 5 of a Columbus Target, becoming one with the store.

Ackman also points to the increased demands of managing almost 400 investors’ money. “It is time for my annual reminder to our investors, now nearly 400 strong, that it is increasingly challenging to balance your requests to meet with members of the investment team with the necessity that we focus our efforts on investment research and decision making,” he wrote. “As you can imagine, these requests, often for ‘only 10 minutes’ if accepted, add up to a substantial time commitment.”

Just something to think about.

Ackman Considers $3 Billion Fund IPO [AR]

**At this point, now that he’s become such a celeb in the discount retailer space, he’s forced to roll up to places incognito, a la food critics.

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Comments (33)

  1. Posted by BMSecurities | June 16, 2011 at 4:37 PM

    I do take pride in the customer service that we provided, unlike this punk.
    ~ Bernard Madoff 

  2. Posted by guest | June 16, 2011 at 4:40 PM

    the guy has $5bil in 8 stocks, what the fuck could possibly be taking up so much of his time? 

  3. Posted by Barteby the Scrivener | June 16, 2011 at 4:44 PM

    “I’d like to thank JFK, MLK, Bill Clinton…and….sniff….snifff…..WAAAAAHHH ! ! !   WAAAAAAHHH ! ! ! !    I LOST MY ASS ! ! ! WAAAAAAAHHHHH”

  4. Posted by Guest | June 16, 2011 at 4:47 PM

    never comment again.

  5. Posted by Barteby the Scrivener | June 16, 2011 at 4:49 PM

    Bill, that you?

  6. Posted by Honorable Weiner | June 16, 2011 at 4:55 PM

    Why is he always crying?  Does he drink estrogen infused muscle milk?

  7. Posted by Guest | June 16, 2011 at 5:04 PM

    he cried once, at the target meeting. hardly “always.”

  8. Posted by Guest | June 16, 2011 at 5:04 PM

    nope.

  9. Posted by Anonymous | June 16, 2011 at 5:08 PM

    Roadshow tip: show up with a Blizard at every meeting and pretend to be Warren’s long lost son from a random at Nebraska-Lincoln junior year.

  10. Posted by Barteby the Scrivener | June 16, 2011 at 5:11 PM

    Well, in all honesty, everyone took a nice ride on the TGT deal, and Bill made money (I think) – too bad the same scenario did not play out on Family Dollar and JCP….those gigantic hellish proxy battles appear to be a thing of the past.

  11. Posted by Guest | June 16, 2011 at 5:16 PM

    can you read?

    “restocking the shelves of an Egg Harbor Family Dollar, or perhaps just sitting in aisle 5 of a Columbus Target, becoming one with the store.”

  12. Posted by Guest | June 16, 2011 at 5:16 PM

    I cry whenever I see a cat by itself.
    -Villanova MBA ’11

  13. Posted by Hilarious | June 16, 2011 at 5:16 PM

    it’s post like this that make me love Bess that much harder.

  14. Posted by Guest | June 16, 2011 at 5:16 PM

    “next time he’s doing one of Sunday morning walkabouts”

    LOL

  15. Posted by Guest | June 16, 2011 at 5:20 PM

    Is his stylist a 1920′s cartoonist?

  16. Posted by Black Mamba | June 16, 2011 at 5:24 PM

    You sad, bro?

  17. Posted by Dood | June 16, 2011 at 6:34 PM

    Is that a mojito? Sack up.

  18. Posted by Frances_Phelan | June 16, 2011 at 6:46 PM

    Do you see any muddled mint leaves? No?! Then shut up n00b.

    It’s a caipirinha.

  19. Posted by Wahoo | June 16, 2011 at 7:24 PM

    Did you get lost on the BQE?

  20. Posted by Lord Humongous | June 17, 2011 at 6:19 PM

    It’s a caprikosa fuckers

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