Pershing Square’s third quarter investor letter is out. Bill Ackman talks about his new investment in Canadian Pacific Railway but we already covered his latest 13D filing. Ackman is clearly concerned about negative publicity about his -16.2% return through the end of September. How do we know this? Because he feels the need to update us about his performance since the end of September. Ackman says his losses improved to around 11% through November 22nd. I am sure he wouldn’t have disclosed his returns if they were -20%. Nevertheless Bill Ackman is a great mutual fund (yep, he doesn’t hedge his positions as much as other hedge funds) manager. Pershing Square returned more than 500% since 2004 and Bill Ackman kept more than 200 percentage points of that as fees. I don’t think his investors are complaining about paying 20% performance fee for his beta exposure though. S&P 500 returned only 19% since 2004.
We liked Pershing Square’s third quarter investor letter. It explains in detail why Ackman is invested in each stock and what he expects. Here is a copy of Pershing Square’s third quarter investor letter: