Bill Ackman’s long-awaited public market entry debuted Wednesday, marking a smaller but still ambitious step toward building an investment platform like Berkshire Hathaway.
The Pershing Square Capital Management founder’s comprehensive initial public offering raised $5 billion, but the price was set at the low end of expectations after marketing the deal with an initial target of $5 billion to $10 billion. The proceeds are a far cry from the company’s original ambition to raise up to $25 billion two years ago.
This transaction created two separately traded entities on the New York Stock Exchange. One is Pershing Square USA Ltd., a closed-end fund that began trading under the ticker PSUS, and Pershing Square Inc., an asset management company listed as PS. The dual structure allows investors to gain exposure to either the underlying portfolio or the managed business itself.
PSUS closed 18% lower at $40.90, well below its public offering price of $50. Meanwhile, PS ended the day at $24.20.
“Hedge funds are known for managing the money of wealthy people, and right now, if you have $50, you have an opportunity to become a long-term shareholder,” Ackman said Wednesday on CNBC’s “Squawk on the Streets.” “Typically, retail trade is severely cut and financial institutions are given preferential treatment. We did the opposite.”
The offering is structured to appeal to both institutional and retail investors, and specifically omits performance fees. PSUS investors received bonus shares in Pershing Square Corp., linking the two vehicles while maintaining separate transactions.
This listing will give retail investors their first direct stake in Ackman’s investment platform. Ackman runs a concentrated portfolio of 10 large-cap stocks including: Amazon, Uber and brookfield As of the end of 2025.
Actual performance and macro hedging
At the heart of Ackman’s pitch is Pershing Square’s long-term revenue profile. Since its founding in 2004, the company has generated cumulative net income of more than 2,600%, far outpacing the S&P 500’s gain of about 836% over the same period, according to roadshow documents.
Another key selling point is the company’s history of macro hedging. Pershing Square credits this strategy with generating huge profits during a period of turmoil. In early 2020, the firm made one of its most high-profile transactions, spending about $27 million on credit protection related to investment-grade and high-yield indexes as the coronavirus pandemic roiled markets. The hedge returned about $2.6 billion within a few weeks, a gain of about 93 times, and helped offset losses elsewhere in the portfolio.
buffett inspiration
Ackman is Berkshirea conglomerate that Warren Buffett has run for decades. The activist investor has repeatedly cited Mr. Buffett’s evolution as a blueprint for Pershing Square’s future, from managing partnerships to overseeing permanent capital institutions.
The company has emphasized the benefits of permanent capital, a structure that reduces the risk of forced sales in times of market stress and allows for long-term positions. Mr. Ackman argued that such flexibility is essential to growing profits over the long term, following the model that transformed Berkshire from a struggling textile business into one of the world’s largest investment vehicles.
Ackman said he plans to incorporate elements of Berkshire’s shareholder culture, such as holding an annual meeting where investors can interact directly with management.
“We’re going to have an investor day. We’re going to have a Berkshire Hathaway-style annual meeting, where people come together and ask questions,” Ackman said.
