Bill Ackman Says Pershing Square Has Achieved a 20% Gross Annual Return Since Inception and Aims to Keep Beating That Bar. Can His Newly Launched Funds Live Up to the Track Record?
2026-09-04 05:30
•Dave Kovaleski •The Motley Fool
••• •••••••• Axe Cap view
Ackman’s Pershing Square: Strong Track Record, Rough Start for New Fund
Bill Ackman’s Pershing Square still impresses, but the recent fund IPO stumble raises questions for local investors.
Bill Ackman’s Pershing Square has averaged a 20% gross annual return since 2004—nearly double the S&P 500’s pace. That kind of performance commands respect. The challenge is the recent Pershing Square USA closed-end fund, which tracks his concentrated 12-stock core portfolio, has dropped 21% since its April IPO at $50. This sharp correction is a red flag but not a death knell. The portfolio leans heavily on global tech giants like Microsoft, Meta, Uber, and Amazon—all companies expected to deliver solid earnings growth. For JSE investors, the direct stock links are limited but watch the rand (USD/ZAR) closely: if the rand weakens, US tech-heavy exposures typically lose value in local terms. Ackman’s upcoming venture fund targeting pre-IPO companies is intriguing but carries big risks, especially in volatile markets and for new public investors. The track record impresses but the near-term path may be rocky. this is just our opinion and not financial advice
Wait to see how Pershing Square USA recovers before committing. For now, consider rand-hedged exposure or selective tech counters on the JSE like Naspers and Prosus instead.
- Pershing Square USA
- USD/ZAR
- Naspers
- Prosus
- Further tech sell-offs impacting global growth expectations
- Rand volatility amplifying foreign exposure losses
6/10
Bill Ackman's Pershing Square hedge fund has delivered a 20% gross annual return since its 2004 inception, outperforming the S&P 500's 11%. The newly launched Pershing Square USA closed-end fund, which tracks the core strategy with a concentrated portfolio of 12 stocks, has declined 21% since its April IPO at $50 per share. Ackman plans to launch Pershing Square Ventures later in 2026 to provide public investors access to pre-IPO, high-growth companies.
Our take is based on reporting first published by The Motley Fool.