Pershing Square Holdings, founded by renowned investor Bill Ackman, is known for its unique investment strategy that combines concentrated portfolio management and activist investing. Ackman is one of the world's most famous and controversial activist investors, known for high-profile battles such as the Carl Icahn versus Bill Ackman Herbalife (HLF +0.69%) battle of 2016.
LSE: PSH
Key Data Points
Regardless of how you feel about Pershing Square's profile or some of its high-profile fumbles, returns on some Ackman deals -- such as his bet against mortgages during the 2007-2009 global financial crisis -- have yielded out-of-this-world returns.
Is Pershing Square stock publicly traded?
Pershing Square is not currently publicly traded in the United States. Pershing Square Capital Management operates as a private hedge fund, primarily serving institutional investors and family offices. While it has a publicly listed fund (Pershing Square Holdings) on the London Stock Exchange (LSE) and Euronext Amsterdam under the ticker symbol PSH, it has not yet been listed on a U.S. exchange.
When will Pershing Square IPO?
Ackman filed initial public offering (IPO) plans for Pershing Square in early 2024. However, he withdrew the application just a few days before the fund's debut on the New York Stock Exchange.
IPO
The withdrawal appeared to result from declining investor interest. The fund reportedly sought to raise as much as $25 billion from investors, but in the days before the expected launch, it revised its target downward to $2 billion. Ackman wrote in a statement:
"While we have received enormous investor interest in PSUS (Pershing Square USA), one principal question has remained. Would investors be better served waiting to invest in the aftermarket than in the IPO? This question has inspired us to reevaluate PSUS's structure to make the IPO investment decision a straightforward one. We will report back once we are ready to launch a revised transaction."
As of March 2025, Ackman hadn't filed new plans to take Pershing Square public.
How to buy Pershing Square stock
Buying stock on the LSE differs slightly from buying stock in the United States. Americans can buy stocks on the London Stock Exchange through international brokerages like Interactive Brokers (IBKR -2.26%), Charles Schwab (SCHW -0.82%), and Fidelity.
The first thing to note is that transactions are conducted in British pounds (GBP), requiring currency conversion, which the brokerage typically handles for a fee. Although minuscule for your average retail investor, fees can add up. Investors also must comply with two regulatory bodies: the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).
You should also be aware of the tax regulations in the U.K. and how those apply to U.S.-based investors. Since the market hours are different in the U.K., trades might not be realized until the next trading day due to the time zone difference.
Follow these steps to buy Pershing Square stock:
Step 1: Open a brokerage account
The first step is to find a platform that will enable you to invest in Pershing Square Holdings. In most cases, the easiest way to buy stock in a publicly traded company is through an online brokerage account. Here's what to look for when you choose a broker:
- Commission-free trades: Many brokers offer commission-free trading, which can save you money on each transaction.
- Low or no minimum deposit: Many brokers have eliminated their minimum deposit requirements, making investing easier for everyone.
- User-friendly platform: Choose a brokerage with a platform that is easy to use and navigate.
- Research tools and resources: Access to educational resources, stock analysis tools, and customer support can be very helpful, especially for new investors.
Step 2: Figure out your budget
When you create a budget for investing in Pershing Square, you should evaluate several key factors, including your current financial situation, investment time frame, and risk tolerance. A good approach is to diversify your portfolio, spreading investments across various industries and securities with differing risk profiles to mitigate risk.
Also, consider whether you want to make a one-time investment or use a dollar-cost averaging strategy. Assess whether your investment goals align with long-term growth or short-term gains. Long-term investors should focus more on Pershing Square's growth potential than anything else.
Step 3: Do research
With any investment, knowledge is power. The more data you can gather, the more prepared you are. Here are some steps to take:
- Look at the track record: Since its inception in 2004 through March 2025, Pershing Square Capital Management has achieved a compound annual return of approximately 15.9%. Compared to a 10% return for the S&P 500 over the same period, Pershing Square's results highlight its legitimacy. Fewer than 90% of actively managed funds actually beat the index, so the fact that Pershing Square has done so well speaks to its viability as an investment.
- Understand how activist investing works: Pershing Square is at the forefront of activist investing, where companies buy up enough shares to win board seats and make major changes. The idea has been framed as "shareholders' rights," but sometimes, the funds are not exactly knights in shining armor to save retail shareholders. In some cases, active funds can focus on short-term gains at the expense of longer-term investors.
- Identify potential risks to Pershing Square: Although Pershing Square is known for its successful bets, it is not without risks. Factors such as market volatility, regulatory changes, and the performance of individual companies in its portfolio can affect its returns.
Step 4: Place an order
Once you've opened your brokerage account, made a budget, and done your due diligence, it's time to place an order. You'll still need to decide between a market order and a limit order. The Motley Fool recommends using market orders since they guarantee you buy your stock for the current price.
Should I invest in Pershing Square?
Deciding whether to invest in Pershing Square depends on your personal circumstances and investment strategy. Here are some key points to consider.
When you might consider investing in Pershing Square
You believe in the power of activist investing. If you support the concept of activist investing, where significant stakes are taken to push for strategic changes, Pershing Square is the poster child. Ackman's approach aims to unlock value in companies through active engagement, making it appealing to those who believe in this hands-on investment style.
You might also like that Pershing Square pushes for changes publicly rather than behind closed doors. When Pershing Square has its IPO, it will need to act on behalf of shareholders as well, so it gives retail investors a real part to play in changes made to Pershing Square's portfolio and activist investing strategy.
You like Pershing Square's track record. Pershing Square has demonstrated resilience and the ability to recover from market downturns, allowing its track record to speak for itself. The fund's various strategic maneuvers in challenging economic times, such as the COVID-19 pandemic, have showcased its ability to protect and grow investor capital, making it a favorite for those valuing proven crisis management.
You want value transparency. Pershing Square is known for its transparency and public disclosure of investment theses. Since it is not yet publicly traded, this pre-IPO transparency will lend itself well to the regulatory scrutiny it will face after going public. This openness allows investors to stay informed about the fund's strategies and holdings, providing peace of mind and alignment with investors who champion great communication.
When you might avoid investing in Pershing Square
You prefer passive investing strategies like tracking an index. If your investment philosophy leans toward passive investing, Pershing Square's active, hands-on approach might not align with your strategy. The fund's activist methods involve significant intervention in portfolio companies, contrasting sharply with the passive investment approach of buying and holding diversified index funds.
You dislike Bill Ackman. Sometimes, even with great returns, you can't have people you dislike running the companies you invest in. Ackman is often criticized for everything from his hair to what many perceive as his self-importance and willingness to risk investors' money to fight battles against other Wall Street titans for an ego boost. If you view Ackman as unlikeable, that's one reason not to invest in Pershing Square.
You prioritize ethical or socially responsible investing (ESG). If your investment decisions are heavily influenced by environmental, social, and governance (ESG), Pershing Square's focus on financial performance and strategic changes might not align with your values. The fund's investments are driven by potential returns and strategic fit rather than ESG considerations. However, it's also crucial to note that ESG scores can be easily manipulated through tactics like greenwashing.
Is Pershing Square profitable?
Yes, Pershing Square Holdings (PSH) remained profitable in 2024, reporting a net income of $1.17 billion, though this marked a decrease from the $2.49 billion earned in 2023. The fund achieved a 10.2% return based on its net asset value in 2024, underperforming the S&P 500 index, which had a nearly 25% total return that year. Since its inception in 2004, PSH has maintained a compound annual return of approximately 15.9%.
Does Pershing Square pay a dividend?
Yes, Pershing Square Holdings Ltd. pays a dividend. The fund made its most recent quarterly dividend payment of $0.1646 per share on March 21, 2025. This marked an increase from the quarterly dividends of $0.1456 per share that the fund paid in 2024. Based on the current value as of March 2025, the annual dividend yield is approximately 1.31%.
ETFs with exposure or similar strategies to Pershing Square
Many exchange-traded funds (ETFs) and index funds track a specific index. Some ETFs with significant Pershing Square holdings include financial sector ETFs and hedge fund replication ETFs.
Exchange-Traded Fund Name and Ticker | Exposure to Pershing Square-Related Companies | Category | Expense Ratio |
|---|---|---|---|
ProShares Hedge Replication ETF (NYSEMKT:HDG) | Mimics the performance of hedge fund strategies, including activist investors like Pershing Square | Hedge Fund Replication | 0.95% |
NYLI Hedge Multi-Strategy Tracker ETF (NYSEMKT:QAI) | Provides diversified exposure to multiple hedge fund strategies, including long/short equity and event-driven approaches similar to Pershing Square | Multi-Strategy | 0.91% |
Global X Guru Index ETF (NYSEMKT:GURU) | Tracks the top holdings of hedge funds, providing direct exposure to the equity investments made by prominent hedge funds such as Pershing Square | Hedge Fund Holdings | 0.75% |
Goldman Sachs Hedge Industry VIP ETF (NYSE:GVIP) | Follows an index of hedge fund managers' most important long equity ideas, offering exposure to dynamic market themes | Hedge Fund Holdings | 0.45% |
The bottom line on Pershing Square
As with any investment, buying or selling Pershing Square stock should be done in conjunction with a thorough analysis of both the investment target and the entire industry. Although Pershing Square has had its share of controversies, its track record speaks for itself.
Related investing topics
Its ability to weather multiple storms is seen as some of the most agile maneuvering in finance. If you believe in the activist investor model and are comfortable with the track record, then Pershing Square might be right up your alley.
FAQ
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