Ackman's Pershing Square Gains 2.7% in July; YTD Loss Cut to -19%

Aug 1 2016 | 10:22pm ET

Bill Ackman’s Pershing Square Holdings, the public version of his Pershing Square LP hedge fund, posted a net return of 2.7% in July, trimming its year-to-date net loss to -19%, according to a performance update released by the firm.

The fund’s portfolio continues to consist of 11 long positions and one short position, Ackman’s long-suffering bet against Herbalife. In July, the company agreed to pay $200 million to settle an action brought by the U.S. Federal Trade Commission regarding its sales and compensation practices. Herbalife’s stock, frequently alleged by Ackman to be a pyramid scheme, rose on the news.

Ackman’s other high-profile investment, a long position in embattled Canadian pharmaceuticals company Valeant Pharmaceuticals, has somewhat stabilized since crashing from an all-time high of more than $263 to a low of around $19 in late June, replacement management and bringing Ackman aboard as a director. 

Ackman raised $3 billion when he listed Pershing Square Holdings as a permanent capital vehicle in Amsterdam in October 2014. Pershing Square Holdings directly managed $4.227 billion at the end of July, while the total invested in the strategy via all Pershing affiliates, including Ackman’s flagship hedge fund Pershing Square LP, was around $11.9 billion. 

July’s figures show an uptick in strategy AUM. In March, the total managed was $11.61 billion, $3.82 billion of which was in Pershing Square Holdings. That said, total AUM remains way down from prior levels - in March 2015, the firm managed more than $19.4 billion.

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