Pershing Square Quits Mall Owner

Feb 11 2014 | 11:37am ET

Pershing Square Capital Management has exited another long-term retail investment, an area that firm founder William Ackman acknowledged last year "has not been our strong suit."

The New York-based hedge fund has sold its remaining stake in mall owner General Growth Properties, the latter said. General Growth announced that it had repurchased the shares for about $556 million, a 3.4% discount to the stock's closing price on Monday.

Pershing Square had unloaded the first half of its formerly 8% stake in General Growth in September.

The hedge fund led a reorganization of General Growth in 2010 with Brookfield Asset Management. The relationship between the two soured soon thereafter, as Brookfield continued to boost its stake in General Growth, and as Pershing Square called for a sale of the company, which was opposed by Brookfield.

Ackman has championed a sale to General Growth rival Simon Property Group. The Wall Street Journal reports that he's abandoning that effort because talks between the two companies are not progressing.

Still, unlike its August sale of its huge J.C. Penney Co. stake, which cost Pershing Square nearly half a billion dollars, the hedge fund is up—way up—on its General Growth investment. Pershing Square paid just $60 million for its stake in the company.


In Depth

'Smart Beta' Funds In Regulators' Sights, Hedgies May Be Next

Mar 26 2015 | 11:11am ET

Funds that mimic strategies used by active managers for a fraction of the cost could...

Lifestyle

Study: Both Marriage and Divorce Lead to Negative Hedge Fund Performance

Mar 25 2015 | 6:51pm ET

Trouble at home leads to trouble in the market for fund managers, according to researchers...

Guest Contributor

The Life Settlement: Yield For The Investor And Cash For The Consumer

Mar 31 2015 | 6:48am ET

Investors are languishing in a yield-starved, low-interest rate environment, looking...

 

Sponsored Content

    Mar 9 2015 | 6:35am ET

    Kelly RodriquesKelly RodriquesAs more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…

Editor's Note