Ackman's Pershing Square reaps $2.7 bln from rate trade but down 9% in 2022 -letter
By Nell Mackenzie
LONDON, Feb 10 (Reuters) -Billionaire investor William Ackman's Pershing Square fund reaped $2.7 billion on interest rate trades in 2022, but not enough to plug losses and the fund finished the year down almost 9%, according to an investor presentation seen by Reuters.
U.S. stock indexes had a dismal 2022 with the S&P 500 slumping almost 20%, as the Federal Reserve battled soaring inflation with aggressive interest rate hikes that roiled markets.
Pershing Square Capital Management in 2022 lost 8.8% of its net asset value its worst result since 2016, while its share price fell 14.6%, the presentation dated Feb. 9 showed.
The assets minus the liabilities in Ackman's fund trade at a discount to its share price. The fund may consider moving its listing from Europe to the United States to remedy this, a Jefferies analyst note JEF.N said on Friday.
"It would likely offer a very good chance of materially narrowing the discount, given the nexus for the fund and manager has always been the U.S. anyway," said the Jefferies note.
"This possibility is also something that we do not feel is currently reflected in PSH's share price," it said.
The contents of the presentation were reported by Institutional Investor on Thursday.
Pershing Square traditionally holds a smaller number of investments. Stock positions in companies such as Lowe's LOW.N, Netflix NFLX.O, Chipotle Mexican Grill CMG.N, Domino's Pizza DBZ.N, Hilton HLT.N and Universal Music Group UMG.AS detracted from positiveperformance elsewhere, the note said.
A performance fee was not charged by Pershing Square Holdings in 2022, the presentation said.
Positions in Netflix and Domino's Pizza were sold in order to free up capital for new opportunities, said the presentation.
Interest rate protection in the form of derivatives known asswaptions, a bet on volatility in rates markets, the fast food company Restaurant Brands International, energy hedges and share buybacks all retraced losses, the presentation said.
The interest rate hedges were initiated in late 2020 and early 2021. In 2022 the fund entered new positions in long-term interest rates, currencies and energy it said.
The Fed raised rates from near zero in March to a range of 4.25%-4.5% last year, hiking rates by a further 25 basis points last week.
Pershing Square declined to comment.
Reporting by Nell Mackenzie; editing by Dhara Ranasinghe and Louise Heavens
By Nell Mackenzie
LONDON, Feb 10 (Reuters) -Billionaire investor William Ackman's Pershing Square fund reaped $2.7 billion on interest rate trades in 2022, but not enough to plug losses and the fund finished the year down almost 9%, according to an investor presentation seen by Reuters.
U.S. stock indexes had a dismal 2022 with the S&P 500 slumping almost 20%, as the Federal Reserve battled soaring inflation with aggressive interest rate hikes that roiled markets.
Pershing Square Capital Management in 2022 lost 8.8% of its net asset value its worst result since 2016, while its share price fell 14.6%, the presentation dated Feb. 9 showed.
The assets minus the liabilities in Ackman's fund trade at a discount to its share price. The fund may consider moving its listing from Europe to the United States to remedy this, a Jefferies analyst note JEF.N said on Friday.
"It would likely offer a very good chance of materially narrowing the discount, given the nexus for the fund and manager has always been the U.S. anyway," said the Jefferies note.
"This possibility is also something that we do not feel is currently reflected in PSH's share price," it said.
The contents of the presentation were reported by Institutional Investor on Thursday.
Pershing Square traditionally holds a smaller number of investments. Stock positions in companies such as Lowe's LOW.N, Netflix NFLX.O, Chipotle Mexican Grill CMG.N, Domino's Pizza DBZ.N, Hilton HLT.N and Universal Music Group UMG.AS detracted from positiveperformance elsewhere, the note said.
A performance fee was not charged by Pershing Square Holdings in 2022, the presentation said.
Positions in Netflix and Domino's Pizza were sold in order to free up capital for new opportunities, said the presentation.
Interest rate protection in the form of derivatives known asswaptions, a bet on volatility in rates markets, the fast food company Restaurant Brands International, energy hedges and share buybacks all retraced losses, the presentation said.
The interest rate hedges were initiated in late 2020 and early 2021. In 2022 the fund entered new positions in long-term interest rates, currencies and energy it said.
The Fed raised rates from near zero in March to a range of 4.25%-4.5% last year, hiking rates by a further 25 basis points last week.
Pershing Square declined to comment.
Reporting by Nell Mackenzie; editing by Dhara Ranasinghe and Louise Heavens
By Nell Mackenzie
LONDON, Feb 10 (Reuters) -Billionaire investor William Ackman's Pershing Square fund reaped $2.7 billion on interest rate trades in 2022, but not enough to plug losses and the fund finished the year down almost 9%, according to an investor presentation seen by Reuters.
U.S. stock indexes had a dismal 2022 with the S&P 500 slumping almost 20%, as the Federal Reserve battled soaring inflation with aggressive interest rate hikes that roiled markets.
Pershing Square Capital Management in 2022 lost 8.8% of its net asset value its worst result since 2016, while its share price fell 14.6%, the presentation dated Feb. 9 showed.
The assets minus the liabilities in Ackman's fund trade at a discount to its share price. The fund may consider moving its listing from Europe to the United States to remedy this, a Jefferies analyst note JEF.N said on Friday.
"It would likely offer a very good chance of materially narrowing the discount, given the nexus for the fund and manager has always been the U.S. anyway," said the Jefferies note.
"This possibility is also something that we do not feel is currently reflected in PSH's share price," it said.
The contents of the presentation were reported by Institutional Investor on Thursday.
Pershing Square traditionally holds a smaller number of investments. Stock positions in companies such as Lowe's LOW.N, Netflix NFLX.O, Chipotle Mexican Grill CMG.N, Domino's Pizza DBZ.N, Hilton HLT.N and Universal Music Group UMG.AS detracted from positiveperformance elsewhere, the note said.
A performance fee was not charged by Pershing Square Holdings in 2022, the presentation said.
Positions in Netflix and Domino's Pizza were sold in order to free up capital for new opportunities, said the presentation.
Interest rate protection in the form of derivatives known asswaptions, a bet on volatility in rates markets, the fast food company Restaurant Brands International, energy hedges and share buybacks all retraced losses, the presentation said.
The interest rate hedges were initiated in late 2020 and early 2021. In 2022 the fund entered new positions in long-term interest rates, currencies and energy it said.
The Fed raised rates from near zero in March to a range of 4.25%-4.5% last year, hiking rates by a further 25 basis points last week.
Pershing Square declined to comment.
Reporting by Nell Mackenzie; editing by Dhara Ranasinghe and Louise Heavens
Activos relacionados
Últimas noticias
Descargo de responsabilidades: Cada una de las entidades de XM Group proporciona un servicio de solo ejecución y acceso a nuestra plataforma de trading online, permitiendo a una persona ver o usar el contenido disponible en o a través del sitio web, sin intención de cambiarlo ni ampliarlo. Dicho acceso y uso están sujetos en todo momento a: (i) Términos y Condiciones; (ii) Advertencias de riesgo; y (iii) Descargo completo de responsabilidades. Por lo tanto, dicho contenido se proporciona exclusivamente como información general. En particular, por favor tenga en cuenta que, los contenidos de nuestra plataforma de trading online no son ni solicitud ni una oferta para entrar a realizar transacciones en los mercados financieros. Operar en cualquier mercado financiero implica un nivel de riesgo significativo para su capital.
Todo el material publicado en nuestra plataforma de trading online tiene únicamente fines educativos/informativos y no contiene –y no debe considerarse que contenga– asesoramiento ni recomendaciones financieras, tributarias o de inversión, ni un registro de nuestros precios de trading, ni una oferta ni solicitud de transacción con instrumentos financieros ni promociones financieras no solicitadas.
Cualquier contenido de terceros, así como el contenido preparado por XM, como por ejemplo opiniones, noticias, investigaciones, análisis, precios, otras informaciones o enlaces a sitios de terceros que figuran en este sitio web se proporcionan “tal cual”, como comentarios generales del mercado y no constituyen un asesoramiento en materia de inversión. En la medida en que cualquier contenido se interprete como investigación de inversión, usted debe tener en cuenta y aceptar que dicho contenido no fue concebido ni elaborado de acuerdo con los requisitos legales diseñados para promover la independencia en materia de investigación de inversiones y, por tanto, se considera como una comunicación comercial en virtud de las leyes y regulaciones pertinentes. Por favor, asegúrese de haber leído y comprendido nuestro Aviso sobre investigación de inversión no independiente y advertencia de riesgo en relación con la información anterior, al que se puede acceder aquí.
