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REPORT: Bill Ackman has fired some staff

Jul 1, 2016, 22:48 IST

Manuel Balce Ceneta/AP

Bill Ackman's hedge fund has laid off eight lower-level staffers, the Wall Street Journal's David Benoit just reported, citing people familiar with the matter.

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The cuts, mostly of back-office workers, amounts to more than 10% of Pershing Square Capital Management's staff, according to the Journal.

The layoffs are unrelated to the hedge fund's recent poor performance, but rather the firm's ability to automate back-office tasks like filling out investor forms, according to the report.

A Pershing Square spokesman declined to comment.

Pershing Square has faced a decline in performance this year, as a big investment in Valeant Pharmaceuticals soured. Ackman has said that he expects the investment to rebound.

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Pershing Square's publicly traded vehicle, which mimics the private hedge fund, is down 20.9% this year through June 21. The New York activist firm had its worst year ever last year, slumping 20%.

With performance declines, assets under management have also dropped. The firm managed $20.2 billion at its peak last July, and about $12 billion as of May.

Pershing Square's structure has helped the firm retain assets by preventing a run on its reserves during rough times. Outside investors can only pull one-eighth of their capital every quarter, for example. And the firm's $4 billion closed-end vehicle is another source of permanent capital, since investors have to sell their shares to redeem.

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