It's been a month since Pershing Square USA (NYSE:PSUS) and Pershing Square (NYSE:PS), the new plays led by star hedge fund manager Bill Ackman, went live on the public markets.
Barry Ritholtz has watched this movie before, and he knows how it ends. On Bloomberg's Masters in Business “At The Money” segment, the Ritholtz Wealth Management founder issued a plain warning to retail investors about the parade of private credit and private equity products now being repackaged for Main Street: the smart money is looking for a door, and you are being positioned as the door.
Pershing Square USA, Ltd. launched as a closed-end fund, raising $5B for Bill Ackman to invest with permanent capital and no redemption pressures. PSUS investors face structural risks: shares typically trade at persistent discounts to NAV, with Ackman's London funds showing ~30% discounts. Management is attempting to narrow the discount gap through buybacks, dividend growth, and marketing, but results have fluctuated between 24% and 29%.
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