PSH.L - Pershing Square Holdings

[ValueHippie]

The buyback program should help closing the gap.

[thepupil]

i sold about 1/3 of my PSH at about a 20% discount.

 

I think additional upside (and more importantly downside) to NAV and multiple will likely come from a successful / unsuccessful deal at PSTH.

 

I like the PSTH $40 Dec 2021 Buy Write for $21 to invest in this outcome and have done so in size and directly. this warrants a lower position in the fund as a failure at PSTH will likely reverse sentiment/NAV growth (to some extent) at PSH.

 

 

[Gregmal]

Maybe Ackman can come in and rescue Ripple with PSTH. Certainly knows his way around the SEC. Still by far the owner of the most egregious and blatant insider trade in history and it was settled for a slap on the wrist.

[thepupil]

A little volatility / hedgefundpocalypse can’t phase my boy Bill. Down less than 2%, increased long exposure to 110% from 100%. Stock fell 8-9% or so so discount now  to 27% 

 

[Jurgis]

A little volatility / hedgefundpocalypse can’t phase my boy Bill.

 

Hopefully Bill has learned to short carefully...

[Drokos]

What broker are members using to purchase PSHZF? TDAmeritrade is now no longer allowing purchases of the security (saying they dont allow purchases of foreign ETFs) so I am only allowed to close and not add to my position. It also looks like InteractiveBrokers doesn't recognize the security.

[gfp]

What broker are members using to purchase PSHZF? TDAmeritrade is now no longer allowing purchases of the security (saying they dont allow purchases of foreign ETFs) so I am only allowed to close and not add to my position. It also looks like InteractiveBrokers doesn't recognize the security.

 

Interactive Brokers will allow you to buy PSH in London and probably on EuroNext Amsterdam, the primary listing.

[NoCalledStrikes]

Fidelity trades it, but with a $50 fee.  Merrilledge trades it for no commission.

[Liberty]

https://assets.pershingsquareholdings.com/2021/02/18084718/PSH-2021-Annual-Investor-Presentation.pdf

 

70.2% return in 2020, wow

[Patmo]

https://assets.pershingsquareholdings.com/2021/02/18084718/PSH-2021-Annual-Investor-Presentation.pdf

 

70.2% return in 2020, wow

 

Gotta give it to them, that was very good timing on shorting the world.

[Xerxes]

I was going to ask at the very high level, what is the on thing that contributed for Pershing to climb out of the hole it went in back when its Valeant investment flopped.

is it just the shorts ? Its long position on average seem to do well, but nothing out of ordinary, unless i am missing something.

 

 

But then flipping through the PPT, found my answer: WOW indeed.

 

Contributors PSH

 

Index CDS 36.6%

Pershing Square Tontine Holdings 13.1%

Lowe's 10.7%

Chipotle Mexican Grill 10.2%

Starbucks 7.6%

Agilent Technologies 7.2%

Restaurant Brands International 3.0%

Hilton Worldwide 2.7%

Accretion from Share Buybacks 2.4%

 

What i am jealous the most is the Starbucks position, I really wanted that at $60 USD per share, and really f*ucked up, by just looking at.

[fareastwarriors]

Bill Ackman, an early Coupang investor, donates his more than $1 billion stake to charity

 

Hedge fund manager Bill Ackman was an early investor in e-commerce start-up Coupang, often called the Amazon of South Korea.

 

Ackman said he’s donated his entire stake in Coupang, worth more than $1 billion, to charity.

 

Often called the Amazon of South Korea, Coupang shares Monday were up about 45% from last week’s IPO.

 

 

https://www.cnbc.com/2021/03/15/bill-ackman-donates-his-more-than-1-billion-coupang-stake-to-charity.html

[fareastwarriors]

2020 Annual Report

[url=https://assets.pershingsquareholdings.com/2021/03/29100010/Pershing-Square-Holdings-Ltd.-2020-Annual-Report.pdf]https://assets.pershingsquareholdings.com/2021/03/29100010/Pershing-Square-Holdings-Ltd.-2020-Annual-Report.pdf[/url]

[thowed]

An interesting read.  A few thoughts:

1: Tontine is delayed.  Hard to know what to make of this - it's been a while now.

2: The long part of the portfolio from 31/12/19 to 31/12/20 (i.e. without the hedges, trading etc.) returned 15.4%.  This is basically the same as the S&P500.

I can't decide if this is good or not.  On the one hand I'd expect more i.e. as evidence he's picking the right stocks.  On the other hand, a) it's a portfolio of blue-chip mega-caps, b) the S&P500 is hard to beat for most managers and c) half his portfolio was pretty badly hit (i.e. restaurants and cafes that were closed).

Assuming the stock-picking is 'OK' and one can expect an S&P500 tracking return going forward, does this make it an attractive investment?

I suppose it depends on whether you think the optionalities are worth it which, as we all know, are:

1: Hedges.  Last year, great (and this year, so far).  If he can carry on like this, and avoid the Herbalifes, then great.

2: the discount to NAV narrowing.

3: Fannie Mae & Freddie Mac legal resolutions.

4: Pulling off the SPAC (which would then give some initial momentum to SPAC pt.2).

Sorry if this is all rather obvious, I'm partly putting it down just to help myself.

Finally, if anyone's read it, am I right in saying he's sold Starbucks again?  The report seems to suggest it happened after the year end, but I'm surprised nobody else seems to have mentioned it in the press yet - maybe I've misunderstood.

[matthew2129]

An interesting read.  A few thoughts:

1: Tontine is delayed.  Hard to know what to make of this - it's been a while now.

2: The long part of the portfolio from 31/12/19 to 31/12/20 (i.e. without the hedges, trading etc.) returned 15.4%.  This is basically the same as the S&P500.

I can't decide if this is good or not.  On the one hand I'd expect more i.e. as evidence he's picking the right stocks.  On the other hand, a) it's a portfolio of blue-chip mega-caps, b) the S&P500 is hard to beat for most managers and c) half his portfolio was pretty badly hit (i.e. restaurants and cafes that were closed).

Assuming the stock-picking is 'OK' and one can expect an S&P500 tracking return going forward, does this make it an attractive investment?

I suppose it depends on whether you think the optionalities are worth it which, as we all know, are:

1: Hedges.  Last year, great (and this year, so far).  If he can carry on like this, and avoid the Herbalifes, then great.

2: the discount to NAV narrowing.

3: Fannie Mae & Freddie Mac legal resolutions.

4: Pulling off the SPAC (which would then give some initial momentum to SPAC pt.2).

Sorry if this is all rather obvious, I'm partly putting it down just to help myself.

Finally, if anyone's read it, am I right in saying he's sold Starbucks again?  The report seems to suggest it happened after the year end, but I'm surprised nobody else seems to have mentioned it in the press yet - maybe I've misunderstood.

Generally agree with all of this, except that I understand he still holds Starbucks-- he sold in January of 2020 and repurchased in March of 2020 and still holds. Short term performance on this thing is going to largely depend on PSTH outcome imo.

[johnpane]

My interpretation is that he sold Starbucks again in 2021. It hasn't been in the media because this is probably the first public indication of that fact.

[quote]At the company’s current valuation, about twice the price we paid one year ago, our expected returns from owning Starbucks are below our long-term targets. As a result, we recently sold our stake.

[matthew2129]

My interpretation is that he sold Starbucks again in 2021. It hasn't been in the media because this is probably the first public indication of that fact.

[quote]At the company’s current valuation, about twice the price we paid one year ago, our expected returns from owning Starbucks are below our long-term targets. As a result, we recently sold our stake.

[thowed]

Thanks for confirming I wasn't going crazy on Starbucks.  Further confirmation in the updated monthly report which shows 9 holdings (down from 10 last month).

I'm dipping my toe in the water - they're still not really my type of companies, but I find the various optionalities (esp. the assymetric swaption hedge) compelling for the current environment.

I don't suppose anyone knows if there is a person/people who are in charge of the Credit Shorts?  I'm guessing it's not Ackman, but I might be wrong.

 

[ValueMaven]

Likely is Ackman.  He has invested in various Credit Shorts (long CDS) transactions since 2002/2003 when he started to short MBIA.