Pershing Square Up 6% In First Quarter

Apr 4 2013 | 12:44am ET

Pershing Square Capital Management withstood big losses on two of its most prominent investments to post a 6% gain in the first quarter.

The New York-based hedge fund rose 2.5% last month, the New York Post reports.

That Pershing Square enjoyed any gains is impressive, given the dismal performance of its headline investments. Nutritional supplements company Herbalife, which Pershing Square founder William Ackman has called a pyramid scheme and which the hedge fund has a $1 billion short against, saw its shares surge 14% on the quarter. And retailer J.C. Penney, which Pershing Square owns 17% of, dropped 23% during the first three months of 2013.

Pershing Square still has a roughly $240 million paper profit on its Herbalife short, which it took at the end of last year. It has lost approximately twice as much over the life of its Penney investment.

The hedge fund was saved from a first-quarter disaster by holdings such as Canadian Pacific Railways, which rose 28% in the first quarter, and Procter & Gamble, which rose 13.5%.


In Depth

GSAM's Papagiannis: Liquid Alternatives For The Long Run

Apr 21 2017 | 8:44pm ET

Interest in liquid alternatives cooled a bit last year amid a broad shift in investor...

Lifestyle

Aston Martin Returns To Debt Market As DB11 Drives Turnaround

Mar 31 2017 | 5:21pm ET

James Bond’s preferred carmaker is returning to the public debt markets for the...

Guest Contributor

Debunking Conventional Investment Wisdom (Part II)

Apr 17 2017 | 5:56pm ET

The alternative investment industry is currently replete with buzzwords around data...

 

From the current issue of