There are several reasons why Pershing Square Holdings (PSH) should interest investors, none of which have anything to do with the hot political takes, financial engineering schemes, personal life or macroeconomic musings of its firebrand founder-manager, Bill Ackman.
For one, the fund rarely trades. Since 2004, excluding dealings with its own subsidiaries and Ackman vehicles, Pershing and its predecessor funds have initiated positions in around 50 US stocks. That’s just over two new active calls a year. Some years pass without big changes.
Second is the extreme concentration of its portfolio. As of 30 June, the fund held just nine US stocks, plus options on state-backed mortgage lenders Fannie Mae and Freddie Mac.