Bill Ackman, CEO of Pershing Square Capital Management, speaks at the Delivering Alpha conference in New York City on September 28, 2023.
Adam Jeffery | CNBC
Pershing Square's Bill Ackman will offer a new investment vehicle listed on the New York Stock Exchange to gain his following among Main Street investors.
The hedge fund billionaire plans to launch a closed-end fund that will invest in 12 to 24 large-cap, investment-grade, “sustainable growth” companies in North America, according to a regulatory filing. There will be no minimum investment.
Unlike traditional hedge funds, which typically charge a 2% management fee on total assets under management and a performance fee of 20% of the fund's profits, Ackman's new fund has no performance fee. Ackman waives the management fee for the first 12 months and charges a flat fee of 2% after the first year.
“The Adviser believes the Fund has the potential to become one of, if not the largest, publicly traded closed-end funds and believes that the Adviser's brand profile and broad secondary following will result in significant investor interest Liquidity will lead to market,” Ackman said in the filing.
A spokesman for Pershing Square declined to comment beyond the filing.
Ackman has become one of the world's best-known hedge fund investors after years of market-leading returns and loud activist campaigns. He also gained a large following on the social media platform with 1.2 million followers
The popular investor's hedge fund only held seven stocks at the end of 2023, including alphabet, Chipotle Mexican Grill And Howard Hughes Corporation. Last year it recorded an increase of 26.7%.
Pershing Square had more than $18 billion in assets under management at the end of January.
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