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Well known activist investor Bill Ackman’s Pershing Square will go public later this year,
Ackman discussed having a public vehicle as far back as probably 2+ years ago, where it was thought that he was going to IPO a fund in London. There are a number of hedge funds in London that are public (see Meb Faber's "The Ivy Portfolio" for more on this), including - most famously - Dan Loeb's Third Point (Third Point Offshore.)
This article and I guess the original letter doesn't really give specifics. I'm guessing that it will still be a London listing (if so, it will probably have a US pink sheet equivalent.)
If not and it is a US listing, I'm guessing it's either a reinsurance vehicle (which Third Point and Greenlight have already done with GLRE and TPRE) or, possibly a direct investment in the company (possibly something like FIG?) I don't think it would be a direct investment in the hedge fund unless Ackman has either A) figured something out (hedge funds in this country have so far had to do the reinsurance route when offering public vehicles, as they can't offer direct investment) or B) is starting a new vehicle intended for the broad public.
All that said, despite the fact that Ackman runs a very concentrated portfolio, I would be interested if it was any of the above aside from a reinsurance vehicle. I'm not really interested in those, although GLRE has started to do well.
I am thinking this event could be signaling a high for the markets. Why do we need Faber, Grantham, Hussman, etc.? You have me. 60% correction is coming, buying opportunity in 2017. I am the Vintage Freak and I approve this message.
A number of people have said this is some sort of top sign. I personally don't think so - if anything, I'm surprised more fund managers haven't done it. How many managers have complained about investors that flee - Whitman, Berkowitz, etc - that's why you've seen Greenlight and Third Point create reinsurance entities. It wouldn't surprise me to see more big name managers do it. You have your hedge fund and you have a reinsurance entity that invests the float in the hedge fund. Or you have your London public fund shares that are effectively a feeder fund for your hedge fund.
Yes I own Hussman. I'm not happy about it but I own Hussman. I own him because I don't think he is wrong in his reasoning. I'm not happy because he screwed up his hedging and lost money. Hedging should yield flat returns not substantially negative ones.
If he F's up twice I might change my mind. Frankly, the fact that he donates so much of what he makes to charity is influencing my decision as well. Same reason I own Bridgeway and plan to buy BRSIX after the next crash. As you know the next buying opportunity will be in 2017 as per the old bald fart from Texas.
I am thinking this event could be signaling a high for the markets. Why do we need Faber, Grantham, Hussman, etc.? You have me. 60% correction is coming, buying opportunity in 2017. I am the Vintage Freak and I approve this message.
VF, you're right in alignment with Harry Dent. Harry Dent is very public with his forecast of Dow 6000 by the end of 2015.
I haven't done the math, but that's probably in line with the 60% correction you mentioned above.
VF, you're right in alignment with Harry Dent. Harry Dent is very public with his forecast of Dow 6000 by the end of 2015.
I haven't done the math, but that's probably in line with the 60% correction you mentioned above.
Harrrrummmmppphhhhh! I am like Harry Dent?!?! I have never ever been insulted like that. For one, I have never been wrong. At least, you will never find any record of it. Furthermore i am saying bottom is 2017 not 2015.
Last but not the least, I am so much more good looking. There is not a single dent in me anywhere and I am no Tom, Dick Or Harry.
Ackman taking on (sueing) the US government's over their handling of profits from Fannie and Freddie. A successful outcome would help Bruce B's fund (FAIRX) as well (which I would appreciate).
Comments
Scott?
This article and I guess the original letter doesn't really give specifics. I'm guessing that it will still be a London listing (if so, it will probably have a US pink sheet equivalent.)
Some discussion of it being a London fund as recently as a few months ago:
http://dealbook.nytimes.com/2014/05/28/ackman-plans-public-hedge-fund/?_php=true&_type=blogs&_r=0
If not and it is a US listing, I'm guessing it's either a reinsurance vehicle (which Third Point and Greenlight have already done with GLRE and TPRE) or, possibly a direct investment in the company (possibly something like FIG?) I don't think it would be a direct investment in the hedge fund unless Ackman has either A) figured something out (hedge funds in this country have so far had to do the reinsurance route when offering public vehicles, as they can't offer direct investment) or B) is starting a new vehicle intended for the broad public.
All that said, despite the fact that Ackman runs a very concentrated portfolio, I would be interested if it was any of the above aside from a reinsurance vehicle. I'm not really interested in those, although GLRE has started to do well.
Why do we need Faber, Grantham, Hussman, etc.? You have me.
60% correction is coming, buying opportunity in 2017.
I am the Vintage Freak and I approve this message.
Either way, they want permanent capital.
, And you still have Hussman, don't you? I thought you still owned his fund/s.
If he F's up twice I might change my mind. Frankly, the fact that he donates so much of what he makes to charity is influencing my decision as well. Same reason I own Bridgeway and plan to buy BRSIX after the next crash. As you know the next buying opportunity will be in 2017 as per the old bald fart from Texas.
Harry Dent is very public with his forecast of Dow 6000 by the end of 2015.
I haven't done the math, but that's probably in line with the 60% correction you mentioned above.
reuters.com/article/2014/08/15/us-fannie-mae-freddiemac-pershing-lawsui-idUSKBN0GE2DK20140815?feedType=RSS&feedName=businessNews