How would you like to diversify your investments away from the energy sector but still bullish on the economy and obtain a 34 % discount on these names?
CANADIAN PAC RY LTD
CHIPOTLE MEXICAN GRILL INC
DOMINOS PIZZA INC
HILTON WORLDWIDE HLDGS INC
HOWARD HUGHES CORP
LOWES COS INC
RESTAURANT BRANDS INTL INC > Popeyes, Tim Horton, Burger King
Universal Music Group
The name is a fund listed on the LSE London stock exchange
Pershing Square Capital managed by the hedge fund manager Bill Ackman
Us symbol PSHZF
London Stock Symbol. PSH
The nav as of last week was 48.81, traded for 32.40. (32.40/48.81) 66.4 % - 1 = 33.6 % discount
https://pershingsquareholdings.com/comp ... ekly-navs/
They release NAV's every WEDS night. By my calculation NAV went up to 50.31 and the price closed 32.95. (32.95/50.31). estimated discount 65.5 % = 34.5 % discount
Ok whats the catch
He has a highly concentrated portfolio
He charges big fees like any hedge fund of 16 % on gains
Pays a 50 cent dividend
Fidelity charges a $ 50 flat commission regardless of size. So a 1000 round lot is 5 cents a share
You can also buy it on Interactive brokers 4.00 per 200 shares which is about 2 cents a share
Fund mgt fee is 1.5 % per year
Performance fee is a whopping 16 % on gains over a NAV of 57 which is the high water mark, its 0 from the current NAV of roughly 50 to 57
The fund is trying to close the discount gap buy buying back shares, recently completing a 100 m buyback as shown here
https://pershingsquareholdings.com/pers ... -shares-6/
I don't know about you but I like buying blue chip companies at a 34 % discount to face and I want to diversify my 100 % energy weighting to a % something less insane.
I plan on holding it until nav reaches 60 nav and then reassess.
If you think the market is in trouble due to recession, stay away. You can see by his holdings he like recession resistant names with a good chunk in fast food
Here is the link to their home page where you can read the annual report
https://pershingsquareholdings.com/
New tip
Re: New tip
Ok, they just announced NAV. 50.90 cents This was as of Tuesday close of business 8/16/22. I was estimating 50.31. The fund closed at 33.18. (33.18/50.90)= 65.2 % or a whopping 34.8 % discount
Weds the assets went up an estimated 50 cents / share , today it was flat on a day the Dow was down .5%.
Today's relative out performance was driven by gains from LOW, CP, UMGNF which were all up
The stock (a closed end fund) closed today at 32.70. (32.70/51.40)= 63.6% or a whopping 36.4 % discount.
I have never seen the discount this high
There is no way in hell this name will stay at 32.70 tomorrow unless there is a 1000 point melt down
https://pershingsquareholdings.com/comp ... ekly-navs/
Weds the assets went up an estimated 50 cents / share , today it was flat on a day the Dow was down .5%.
Today's relative out performance was driven by gains from LOW, CP, UMGNF which were all up
The stock (a closed end fund) closed today at 32.70. (32.70/51.40)= 63.6% or a whopping 36.4 % discount.
I have never seen the discount this high
There is no way in hell this name will stay at 32.70 tomorrow unless there is a 1000 point melt down
https://pershingsquareholdings.com/comp ... ekly-navs/