Profiles >> Pershing Square Capital Management LP

Pershing Square Capital Management LP

Last Updated: 12/3/2020

Pershing Square Capital Management LP is a Limited Partnership that started in 2004 and is primarily owned and controlled by Bill A. Ackman.

Pershing Square operates as an investment advisory firm, offering investment funds and advisory through Pershing Square, L.P., Pershing Square International, Ltd, and Pershing Square Holdings.

Pershing Square Capital Management LP operates out of an office in New York, NY. Based on the Form ADV filed on 2020-03-30 00:00:00, the investment firm is comprised of 36 employees, only 9 of whom performs investment advisory functions.

Fact Sheet

      Name: Pershing Square Capital Management LP
      CRD No: 132982
      Filing Recorded: 2020-03-30 00:00:00
      Year of Origin: 2004
      Employees: 36
      Clients: 3
      AUM: 9,154,898,159
      Management Fee: 1.5 Percent
      Performance Fee: 20+ Percent
      Client Type: Pooled Investment Vehicles
      Assets Traded: Unspecified


Investment Strategy

According to the brochure submitted to IAPD, Pershing Squares investment strategy is as follows:

In seeking to achieve the Funds’ objectives, the Adviser may use any investment strategy, long or short, in the global marketplace that it believes will enhance overall performance and, except as described in the Funds’ offering documents, there are no restrictions on the securities or other financial instruments that may be used by the Funds. The Funds are authorized and are expected to invest in long and short positions in equity or debt securities of U.S. and non-U.S. issuers (including securities convertible into equity or debt securities); distressed securities, rights, options and warrants; bonds, notes and equity and debt indices; swaps (including equity, foreign exchange, interest rate, commodity and credit-default swaps), swaptions, and other derivatives; instruments such as futures contracts, foreign currency, forward contracts on stock indices and structured equity or fixed-income products (including without limitation, asset-backed securities, mortgage-backed securities, mezzanine loans, commercial loans, mortgages and bank debt); exchange-traded funds; and any other financial instruments that the Adviser believes will achieve the Funds’ investment objectives. The Funds’ investments may include both publicly traded and privately placed securities of public issuers, as well as publicly traded securities of private issuers. The Funds also may invest in securities sold pursuant to initial public offerings. Investments in options on financial indices may be used to establish or increase long or short positions or to hedge the Funds’ investments. The Funds have no overarching strategy or asset allocation model that specifies what percentage of their portfolios should be invested in each investment category. Rather, cash, cash equivalents, and/or securities issued by the U.S. Department of the Treasury (“U.S. Treasurys”) are generally the default investment choices for the Funds until the Adviser identifies new investment opportunities. The Funds’ allocation among different investment categories is a function of their potential risk and reward compared with available opportunities in the marketplace. Accordingly, the Funds may hold significant cash balances on an ongoing basis.

The Funds will not make an initial investment in the equity of companies whose securities are not publicly traded (i.e., private equity), but, as described above, may invest in privately placed securities of public issuers and publicly traded securities of private issuers. Notwithstanding the foregoing, it is possible that, in limited circumstances, public companies in which the Funds have invested may later be taken private and the Funds may make additional investments in the equity or debt of such companies. The Funds may make investments in the debt securities of a private company, provided that there is an observable market price for such debt securities.

Methods of Analysis

In addition, Pershing Squares methods of analysis include:

As part of the Funds’ investment program, the Adviser intends to concentrate the Funds’ assets in a relatively limited number of investments because the Adviser believes that (1) there are a limited number of attractive investments available in the marketplace at any one time, and (2) investing in a relatively modest number of attractive investments about which it has detailed knowledge provides a better opportunity to deliver superior risk-adjusted returns when compared with a large diversified portfolio of investments it can know less well. As a result, the Adviser intends to invest the substantial majority of the Funds’ capital in typically 8 to 12 core investments.

Top 10 Holdings from Form 13F

Reporting Period: 09/30/2020

Issuer Share Value(1000s) Put/Call
LOWES COS INC 12,408,077 2,058,004
RESTAURANT BRANDS INTL INC 25,119,016 1,444,595
CHIPOTLE MEXICAN GRILL INC 1,161,232 1,444,236
AGILENT TECHNOLOGIES INC 12,248,514 1,236,365
HILTON WORLDWIDE HLDGS INC 13,363,011 1,140,132
STARBUCKS CORP 10,131,008 870,456
HOWARD HUGHES CORP 10,918,008 628,877

Historical 13F Filings

EdgeGiant has compiled all 13F filings since Q2 2013 for your convenience. You can view historical portfolio position forPershing Square Capital Management LPin our 13F section HERE.

To get the comprehensive list of holdings that fall under 13F regulatory guidelines, check out our write up on how to access and use 13Fs in your personal investment decisions.

Related Topics

What is Form 13f?
What is Form ADV?
How to Invest Like Warren Buffett?
Historical Portfolio Holdings for Pershing Square Capital Management LP