Sunday, 21 September 2014
Last updated 1 day ago
Feb 9 2009 | 1:11am ET
Not all hedge funds got back on target last month, as it were.
Pershing Square Capital Management’s fund that invests exclusively in Target Corp. securities plummeted another 40.1% last month after dropping 68% in 2008. The fund has lost 89.5% of the $2 billion it raised in 2007.
In the wake of the disastrous performance, the activist hedge fund shop plans to allow Pershing Square IV investors to withdraw what little money they have left in the fund, The Wall Street Journal reports. New York-based Pershing Square originally planned to allow investors to redeem only 15% of their investment.
Still, if founder William Ackman is to be believed, the firm is not giving up on Target.
“While PSIV and Target stock have declined materially, we still believe our fundamental investment case for Target stock will ultimately be realized, although not within the original timeframe we had initially estimated,” Ackman wrote in a Feb. 5 letter to investors.
Risking charges of throwing good money after bad, Ackman himself pledged $25 million of his own money to the fund, and said the firm’s employees and board members will also pony up. He also said he had restructured the fund, investing in longer-dated options that could pay off big if Target shares almost double in price over the next two years.
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.