Pershing Square Capital Management, an investment management firm, published its fourth-quarter 2021 investor letter – a copy of which can be downloaded here. An annual portfolio net return of 26.9% was recorded by the fund for the whole year of 2021, versus the S&P 500 Index, the FTSE 100, and MSCI World Index that delivered a 28.7%, 17.4%, and 22.3% return respectively for the same period. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.
Pershing Square Capital Management, in its Q4 2021 investor letter, mentioned Pershing Square Tontine Holdings, Ltd. (NYSE: PSTH) and discussed its stance on the firm. Pershing Square Tontine Holdings, Ltd. is a United States-based blank check company with a $3.9 billion market capitalization. PSTH delivered a 0.56% return since the beginning of the year, while its 12-month returns are down by -33.70%. The stock closed at $19.83 per share on February 19, 2022.
Here is what Pershing Square Capital Management has to say about Pershing Square Tontine Holdings, Ltd. in its Q4 2021 investor letter:
“While seeking a transaction for PSTH, we are simultaneously looking to improve its structure with the launch of SPARC.
SPARC seeks to improve upon PSTH’s structure:
✓ Investors opt-in to the initial business combination (“IBC”)
✓ Reduced opportunity cost with no investor funding until a target is identified
✓ Amount of capital raised can be precisely tailored to capital requirements of merger partner
✓ Up to 10 years to complete a transaction vs. 2 years for a typical SPAC
✓ No underwriting fees
✓ Pure common stock capital structure other than 20% out-of-the-money warrants on 5.21% of shares outstanding held by Pershing Square funds and SPARC directorsTiming of SPARC distribution assuming receipt of regulatory approval:
If PSTH executes an IBC before SPARC registration statement is declared effective, distribution of SPARs to PSTH shareholders and warrantholders would occur shortly prior to IBC closing.
If PSTH does not consummate an IBC, distribution would occur concurrently with return of PSTH capital in trust…” (Click here to see the full text)
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Our calculations show that Pershing Square Tontine Holdings, Ltd. (NYSE: PSTH) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. PSTH was in 55 hedge fund portfolios at the end of the third quarter of 2021, compared to 49 funds in the previous quarter. Pershing Square Tontine Holdings, Ltd. (NYSE: PSTH) delivered a -2.22% return in the past 3 months.
In October 2021, we also shared another hedge fund’s views on PSTH in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.
Disclosure: None. This article is originally published at Insider Monkey.
