Bill Ackman Thanks Investors In Advance For Going Down With The Ship

The hedge fund manager has told investors to buckle the f*ck up re: year end performance; they've responded "Anything for you, Bill."
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Earlier this week, hedge fund manager Bill Ackman wrote a letter to Pershing Square investors notifying them that unless something wild happens in the next 11 or so trading sessions we've got left this year, 2015 is going to be remembered as an annus fucking horribilis in the many, many history books hedge fund scholars will write about Pershing Square. But while other, lesser hedge fund managers grappling with similar results would likely be facing redemptions en masse, Ackman is pleased to report that Pershing Square investors can't and won't quit him, no matter how bad things get.

Billionaire hedge fund investor William Ackman, whose funds have suffered double-digit losses this year, on Tuesday told investors that 2015 could be his firm's worst ever, but said clients are generally sticking with him. "If the year finishes with our portfolio holdings at or around current values, 2015 will be the worst performance year in Pershing Square's history, even worse than 2008 during the financial crisis," Ackman wrote in a 17-page letter that was seen by Reuters. Investors in funds operated by Pershing Square Capital Management have asked for only a minimal amount of money back recently, Ackman wrote in the letter, saying that the firm, founded in 2004, was not forced to sell out of positions in order to meet redemption requests.

He could spend 99 percent of the firm's assets under management on a documentary exposing the truth about Herbalife and they'd still stick with him.

Ackman tells investors that this year could be his firm's worst ever [Reuters]

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Bill Ackman: Where We're Going, We Don't Need Roads

The principal weakness we share with most other money managers is the fact that our capital base is not permanent, and we therefore keep cash on hand and/or own passive liquid investments which we can sell to meet potential investor demands for capital. To address this weakness in our open end hedge fund structure, later this year, we intend to launch the private phase of Pershing Square Holdings, Ltd., which we expect to eventually list on the London Stock Exchange...In [the cases of Canadian Pacific, JC Penney, Justice Holdings and General Growth], we had the resources to effectuate the necessary change and the capital commitment from investors who were willing to wait for the changes to be implemented. During the course of each investment, however, there have been periods of enormous skepticism both from the investing public at large and, presumably, from some of you who are invested in the Funds...The Pershing Square funds have been a large beneficiary of our ability to take advantage of periodic market skepticism by increasing our ownership at more favorable prices. Volatility is the friend of the unleveraged long-term investor. We much prefer the bumpy road to higher rates of return than a smoother ride to more modest profits. Pershing Square Q12012 Letter To Investors [PDF]