Ackman's Pershing Square's Total Assets Fell 20 Percent in 2017

• January 29 2018
• Scott Deveau

Bill Ackman’s Pershing Square Capital Management reported a net loss of 4 percent on its investments in 2017, with assets under management falling by almost $10 billion over the past two years.

Bill Ackman’s Pershing Square Capital Management reported a net loss of 4 percent on its investments in 2017, with assets under management falling by almost $10 billion over the past two years.

Pershing Square said in a presentation Monday that total assets under management fell to $8.77 billion at the end of 2017, down from about $11 billion at the same point in 2016 and $18.3 billion in 2015. The fund’s net loss trailed the broader hedge fund industry, which returned 6.5 percent on average on an asset-weighted basis in the best annual performance since 2013, according to a Hedge Fund Research report this month. 

Pershing Square has suffered from an exodus of money out of hedge funds -- particularly the poorer performers -- as investors move to cheaper passive products.

The firm confirmed a new stake in Nike Inc., which has increased 29 percent from the average price Pershing Square paid for its holding. The firm also said it had bought and sold a position in credit rating and financial data services company S&P Global Inc. That stake was sold because Pershing wasn’t able to build a full-sized position at an attractive price.

Pershing Square’s largest return was made on Restaurant Brands International Inc., which returned 5.2 percent. Its biggest loss was on its investment in Herbalife Ltd., which was down 4 percent.

The firm also announced a series of organizational changes that will see Ackman step back from day-to-day investor relations, which will be managed by Ben Hakim. Nick Botta, Pershing Square president, will also take on increasing responsibilities for non-investment team related operations, the firm said.