Pershing Square CEO Bill Ackman: We look nothing like other closed-end funds

Summary

Bill Ackman discusses the IPO of Pershing Square USA, a differentiated closed-end fund with strong governance and performance. He explains the oversubscribed offering that favored retail investors and the gift of management company shares, arguing the fund will avoid the typical discount of closed-end funds.

• Bill Ackman presents Pershing Square USA (PSUS) as a unique closed-end fund with best-in-class governance, performance, and strategy.
• PSUS generated 25% annual returns versus the 7% average for equity closed-end funds.
• The IPO raised $5 billion, the sixth largest in the past decade, and was oversubscribed.
• Retail investors received full allocation while institutions were cut back.
• Each five shares of PSUS purchased came with one share of Pershing Square Inc., creating an IPO pop.
• Ackman draws an analogy to Sam Zell's successful REIT IPO, predicting PSUS will trade at a premium.
• The fund offers tax efficiency and flexibility unlike typical CEFs.
• Ackman expresses confidence in the long-term investment case for PSUS.