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Billionaire hedge fund manager Bill Ackman is poised to exceed 50% returns after a 3-year drought

Dec 6, 2019, 23:25 IST
AP Photo/Richard DrewBill Ackman.
  • Bill Ackman's hedge fund is pacing itself for returns in excess of 50% through 2019 after three consecutive yearly losses.
  • Pershing Square Capital Management posted a 3.4% gross gain for November, or 3.2% after fees.
  • The month's performance brings its year-to-date return to 51.3% after fees.
  • Pershing Square nearly secured a net yearly gain in 2018, but fees dragged its 0.7% growth to a -0.7% loss.
  • Visit the Business Insider homepage for more stories.

Bill Ackman's hedge fund is on track to land massive returns after three years of negative net performance.

Pershing Square Capital Management posted a 3.4% gross gain for November, or 3.2% after fees. The month's performance brings its year-to-date return to 51.3% after fees.

Should Pershing Square's 2019 surge continue through December, Ackman's fund will post its first year of positive net returns since 2014.

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Pershing Square nearly posted positive growth in 2018, but fees pulled yearly performance to -0.7% from 0.7%. Since then, Pershing Square ditched chemical and business service companies from its portfolio and added investments in the insurance sector. Ackman's fund also shrank its long positions to nine from 11 in 2018.

The fund is also on pace for its best yearly performance since its parent company, Pershing Square Holdings, went public in October 2014. Ackman's fund was formed in 2003 before going public on the Euronext Amsterdam exchange. It began trading on the London Stock Exchange in May 2017.

Pershing Square Holdings manages nearly $7.2 billion across its "core funds," with the majority of its holdings concentrated in large-cap firms.

Ackman serves as the founder and CEO of Pershing Square Capital Management and boasts a net worth of roughly $1.8 billion, according to Bloomberg data. He previously led hedge fund Gotham Partners from 1993 to 2003.

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