Ackman's aura
Bill Ackman's sale of a 10% stake in his funds management business Pershing Square for a whopping price continues his stellar run — but can it last?
Almost four years ago, along with a small group of other financial journalists, I was invited to join a conference call with US hedge fund impresario Bill Ackman ahead of his appearance at an Australian investment event.
The world was still deeply in the throes of the coronavirus pandemic, and Ackman had just regained his aura as a master investor. He'd just pulled off a complex credit derivatives trade that positioned him perfectly for the market meltdown that took place a few months earlier, making him billions in the space of a few short weeks.
The call took place just weeks before the last US election, and on it Ackman warned of a rocky period ahead for markets and US society following polling day. His comments proved prescient.
That feels like a very long time ago now, but Ackman is still riding high. Overnight, he sold a 10% stake in his funds management business, Pershing Square, to a consortium of family offices and investment firms for USD1.05 billion ($1.57 billion) — valuing the firm at USD10.5 billion.
