Hedge fund manager Bill Ackman is pressing forward with ambitious return targets as Pershing Square Capital Management broadens its public market presence with new fund offerings.
Ackman founded Pershing Square Capital Management on January 1, 2004, launching with just $54 million in assets under management before growing into a multi-billion-dollar operation.
The core strategy now manages approximately $24 billion in assets across various funds, delivering a 15.6% compound annual return since inception, beating the S&P 500’s 11% over the same period.
On a gross basis before fees, the fund has averaged a 20% annual return since inception, according to an August 12 shareholder letter Ackman authored.
Pershing Square recently listed its new closed-end fund, Pershing Square USA (NYSE: PSUS), which tracks the firm’s core investment strategy and gives public market investors direct access to Ackman’s approach.
The IPO priced at $50 per share on April 29, but PSUS has since fallen roughly 21%, currently trading around $39 per share, while the S&P 500 gained 7% over the same period.
Ackman has been clear that short-term price movements are secondary to the long-term investment thesis his team applies across its concentrated portfolio.
“Our goal in selecting investments is to find businesses that meet our core principles, that have a high likelihood of sustaining significant rates of normalized EPS growth, and that are available at attractive prices,” Ackman wrote in the Pershing Square USA semi-annual report.
PSUS holds just 12 stocks accounting for 86% of its portfolio, with Microsoft (NASDAQ: MSFT), Uber Technologies (NYSE: UBER), and Meta Platforms (NASDAQ: META) ranking as the three largest positions.
Brookfield Corp. (NYSE: BN), Amazon (NASDAQ: AMZN), and Restaurant Brands International (NYSE: QSR) round out the next tier of significant holdings within the concentrated portfolio.
Ackman expects each holding to grow earnings per share by at least 15% annually over the next three to five years, with half of the positions growing EPS by 20% per year.
He added that all current holdings trade at discounted multiples, which he believes are significantly below their intrinsic value, reinforcing his conviction in the portfolio’s long-term upside.
“Our goal for the funds and companies we manage and invest in is to generate gross returns in excess of 20% per annum over the long-term,” Ackman stated in his shareholder letter.
Beyond PSUS, Pershing Square is preparing to launch Pershing Square Ventures, a new fund designed to give public market investors access to pre-IPO, private market, high-growth companies.
The new vehicle will also be permitted to retain positions in companies after they go public, adding a flexible mandate that distinguishes it from traditional venture funds.
Ackman said the fund will carry “substantially” lower fees than most private venture and growth funds, positioning it as a more accessible option for investors seeking private market exposure.
“We believe our public markets experience translates directly to venture and growth-stage investing,” the shareholder letter states, pointing to deep familiarity with themes like artificial intelligence that drive private company valuations.
More details about Pershing Square Ventures are expected to be released in the coming months, with the fund anticipated to make its debut before the end of 2026.
