Keep pulling the thread on Bill Ackman.
The initial public offering target for Pershing Square USA (PSUS) was $25 billion.
The Pershing Square USA (PSUS) closed-end fund raised $5 billion in its initial public offering.
Bobby Jain is shutting down his hedge fund, Jain Global, returning outside capital, and will go back to managing money exclusively for Millennium.
A recent short squeeze in Avis stock was driven by two hedge funds, SRS and Pentwater, collectively owning more than 100% of the company's stock through shares and derivatives.
Hedge fund Pentwater sold a large portion of its Avis holdings at the peak of a short squeeze, generating approximately $1.75 billion in proceeds and an estimated profit of around $1 billion.
Pentwater is arguing that most of its profits from selling Avis stock are not subject to Section 16 short-swing profit rules by claiming the shares sold were held in different funds from those that recently purchased shares.
Bill Ackman, founder of Pershing Square, had been planning to take a new closed-end fund named Pershing Square USA (PSUS) public for approximately two years.
Pershing Square executed a dual IPO for its management company (PS) and its new closed-end fund, Pershing Square USA (PSUS).
Following its IPO, the Pershing Square USA (PSUS) fund traded at a meaningful discount to its net asset value.
Bill Ackman's other closed-end fund, which is based in Europe, also trades at a discount to its net asset value despite having a good investment track record.
Bill Ackman's stated goal is to build Pershing Square into a permanent capital company similar to Berkshire Hathaway, which is why he prefers the closed-end fund structure over an ETF.
Anchor investors in the Pershing Square USA IPO received a better deal than public investors, getting three-tenths of a share in the management company versus one-fifth of a share for the public.