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Bill Ackman's flagship fund at Pershing Square fell 0.1% in February, not bad considering the...

Bill Ackman's flagship fund at Pershing Square fell 0.1% in February, not bad considering the hits from two of his marquee holdings. The last day of the month was particularly painful, with J.C. Penney plummeting 17% while Herbalife jumped 7.6%. For the year, the fund is up 3.6% vs. the S&P's 7.4% gain. 
Comments (22)
  • Drew Robertson
    , contributor
    Comments (312) | Send Message
     
    Hunter Harrison to the rescue.
    4 Mar 2013, 08:05 PM Reply Like
  • deercreekvols
    , contributor
    Comments (5131) | Send Message
     
    3.6% gain on his flagship fund?
    With the Dow pushing its all-time high, 3.6% is terrible.
    Perhaps it is time to re-think his marquee holdings.

     

    Less time arguing with Carl Ichan and more time with the flagship fund, perhaps?
    4 Mar 2013, 08:06 PM Reply Like
  • Yorick
    , contributor
    Comments (489) | Send Message
     
    one would say that this result is almost impossible given the hits he is taking unless he isn't holding what he say he is
    4 Mar 2013, 08:24 PM Reply Like
  • Sean Bellamy McNulty
    , contributor
    Comments (235) | Send Message
     
    I concur, his stake in Herbalife was massive, where can the Pershing Square performance report be found?
    4 Mar 2013, 08:39 PM Reply Like
  • movies555
    , contributor
    Comments (576) | Send Message
     
    I'm guessing he's been helped considerably by holdings in CP Rail and Procter and Gamble, among one or two other things. He doesn't hold that many diff names. He's lucky he has a few things working very well. I'm curious how all this HLF and JCP stuff will effect (if at all) Ackman's IPO of his public hedge fund on the London market this year...
    4 Mar 2013, 08:45 PM Reply Like
  • Ghosts of Kariela
    , contributor
    Comments (152) | Send Message
     
    Ackman's Fund total value is rather hard to asses, the whole Justice Holdings-Burger King-3G Deal is an example of this, I'm not sure it is very easy to find his total fund's worth.
    4 Mar 2013, 09:13 PM Reply Like
  • erictoneil
    , contributor
    Comments (23) | Send Message
     
    He needs to cut his losses with Herbalife, that may be much harder to do with $JCP. Unless something changes, his antics with Herbalife and the continued support of Ron Johnson will cost him valuable credibility.
    4 Mar 2013, 08:37 PM Reply Like
  • Brandond
    , contributor
    Comments (339) | Send Message
     
    I hope all the ultra wealthy like paying 2 and 20 for Ackman's brilliance.
    4 Mar 2013, 08:37 PM Reply Like
  • Ted Bear
    , contributor
    Comments (573) | Send Message
     
    Would love to see the look on Carl Icahns face should he wake up tomorrow and find out that Ackman covered his entire position in HLF!

     

    Then Ackman starts buying puts like a mad man on the way down as Icahan gaks up his stake.......talk about 'triggering circuit breakers'!

     

    (Of course it would never happen because several firms make a living out of figuring out exactly what every trader/insitution/hedge fund is doing by paying off the back office clerks, clearing agents, and settling depositories to divulge such info. But it is fun to imagine).
    4 Mar 2013, 08:41 PM Reply Like
  • JLesinski
    , contributor
    Comments (137) | Send Message
     
    I have to think that Ackman has covered at least half of his herbalife short. There's no way he was riding that thing to a zero bid...
    4 Mar 2013, 09:16 PM Reply Like
  • Macro Investor
    , contributor
    Comments (8224) | Send Message
     
    This is why Ackman needs to start buying and holding index ETFs.
    4 Mar 2013, 10:07 PM Reply Like
  • Ghosts of Kariela
    , contributor
    Comments (152) | Send Message
     
    Why would he do that? Then he would have missed out on GGP and MBI shorting. If you found a structural flaw in a company that could lead to the companies bankruptcy would you not take an opportunity to profit off of it?
    4 Mar 2013, 10:35 PM Reply Like
  • Macro Investor
    , contributor
    Comments (8224) | Send Message
     
    I thought the goal was to maximize returns on the overall portfolio. Clearly I was wrong.
    4 Mar 2013, 11:34 PM Reply Like
  • Zeus2012
    , contributor
    Comments (695) | Send Message
     
    Macro - he would not be able to charge the type of fees that he does if he hold index ETFs.

     

    Making money for clients is really more secondary for these guys.
    4 Mar 2013, 11:43 PM Reply Like
  • Macro Investor
    , contributor
    Comments (8224) | Send Message
     
    That makes sense. The more they underperform the market the more fees they can charge.
    5 Mar 2013, 12:10 AM Reply Like
  • Ghosts of Kariela
    , contributor
    Comments (152) | Send Message
     
    That assumes that Ackman consistently underperforms the market. He beat in 2010 according to Insider Monkey. There would be no demand for such funds if the market is such a efficient machine. I'd say the market currently is one of the most inefficient markets in a while, especially given how traders, HFT and the general public can run around creating pricing inequalities willy nilly due to the advances in technology.
    5 Mar 2013, 12:26 AM Reply Like
  • Macro Investor
    , contributor
    Comments (8224) | Send Message
     
    He beat last in 2010? Then clearly he gets a hall pass for 2011 and 2012, and for the rest of 2013 as well. After all, he is a hedge fund manager. He is supposed to underperform the market.
    5 Mar 2013, 01:38 AM Reply Like
  • dividend_growth
    , contributor
    Comments (2878) | Send Message
     
    John Paulson is the one really getting massacred for his gold holdings.
    4 Mar 2013, 11:07 PM Reply Like
  • Ghosts of Kariela
    , contributor
    Comments (152) | Send Message
     
    Yeah, he bailed financials at exactly the wrong time. Had he sold gold then and stuck with Citigroup and whatnot he would be doing very well.
    4 Mar 2013, 11:50 PM Reply Like
  • Ghosts of Kariela
    , contributor
    Comments (152) | Send Message
     
    then again hindsight is always 20/20
    4 Mar 2013, 11:51 PM Reply Like
  • Macro Investor
    , contributor
    Comments (8224) | Send Message
     
    John Paulson is an icon and a hedge fund manager. So what if he loses a whole lot of money? He should still be respected.
    5 Mar 2013, 01:39 AM Reply Like
  • 1980XLS-2.0
    , contributor
    Comments (525) | Send Message
     
    HLF is still trading at levels below where Ackman publicly announced his short position.

     

    Since it was trading higher in the weeks preceding his announcement, he is likely not even underwater at present.
    5 Mar 2013, 05:47 AM Reply Like
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