Like his fellow activist hedge fund managers, Bill Ackman has been known to call for the occasional company to take a hatchet to itself and sell the resulting parts, a strategy that they call “unlocking shareholder value.” The theory, it seems, is that many, many companies are worth more than the sum of their parts, and that by splitting into multiple companies or pawning some/all of those parts, shareholders’ stakes in said companies would be worth more.
Take PSHZF: Its expenses are super-low right now. It’s got a strong buyback program. And the math says that if you just split the company up, it’ll be worth 23% more than what you’ll pay for it right now. No brainer, right, Bill?
Well, there is a catch.
Pershing Square Holdings is a publicly traded hedge fund which trades as a closed-end fund. It is run by Bill Ackman, the highly controversial activist investor.
Pershing Square Holdings: Hedge Fund Available At A 23% Discount [Seeking Alpha]