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Shares in treasury now over 10% after recent buy backs
I thought management held circa 30%. Can anyone verify the management holding.
Thanks, Vig
As far as I'm aware the current charges are 2% management fee plus 16% performance fee above the high water mark. We are currently close to the high water mark of around $57 NAV. A 10% gross return is therefore reduced by 2% plus either 1.6% (gross) or 1.3% (net) performance fee totalling a 30%+ reduction on the actual return, reflected by the discount on the trust itself.
With the exhaustion of the buybacks, only outperformance is likely to put any pressure on the discount. I'm afraid other avenues seem to be hot air.
Yes had traded at a discount between c25-35%. A US listing should put us back to NAV or small premium typically 0 - 10%
Bill is actively looking for a vehicle to do just this. Expecting this to happen in the next 12 months
I picked up a couple "k " shares late yesterday as LT hold. Will be buying more on weakness
I am reasonably certain that this has always traded at a discount?
Bought in on the big discount and longer term performance. Icing on cake would be finding a way to list in America and valuation of PSH increased.
Just keeps growing. 33% discount to NAV for a fund of highly liquid US stocks. Something has to give eventually, surely.
From an attendee on twitter......
My most important takeaway was @BillAckman saying he has worked extensively on finding ways to migrate $PSH to the US. Re the Invst Co Act, he needs to find a large US target. $HHC is too small for this but could be part of the solution.
Energy hedges brought 0.5% of NAV this year. Bill believes energy prices could go much higher and retains hedges.
Believes the 30Y yield is too low and is playing this via derivatives
The investor presentation is on their website now.
I couldn't make it but I'll pass on any info I can garner from sources.
Hopefully get a good update from Bill today. Anyone watching?
Interesting to note that Pershing cannot list in US at the moment. They would have to have a majority holding in the company for that to happen
Bill and team personally hold over 30% of Pershing, not by award, but by personal purchased.
I wonder with all the share buy backs, whether they are moving in this direction.
Ackman held out the prospect of listing PSH in the US in future years, a move that could boost investor demand by making it much more marketable in the main market in which it invests.
That could help address the chronic double-digit share price discount that has been the major problem with Pershing Square’s performance.
are they going to relocate to reduce discount ? Great news
https://yetanothervalueblog.substack.com/p/james-elbaor-is-investing-in-bill?r=185xp6&s=r&utm_campaign=post&utm_medium=email
Transcript and video.
Hi Zebbo, I'm pretty sure Bill said in the last investors call that they'd cashed in the swaptions (at 3X) but then taken out new ones with longer expiry dates.
Bill always talks his book up so recently when he said he expected 0.75% base hike or even 1% (and got 0.75%) strongly suggests that PSH has some swaptions out there benefitting from that hike. :)
Meanwhile we are now on a 35% discount to NAV - i.e. the discount has widened by 5% despite the hidden value of:
1. the swaption
2. the liquidation of PSTH and Netflix which provides liquidity in a market awash with opportunities (we can safely assume PSH are doing something interesting with these funds)
3. Fannie Mae and Freddy Mac are beneficiaries of rate rises.
4. The portfolio are all resilient quality stocks - happy to be holding some key US names that generate lots of cash.
5. Favourable $/£ translation for UK holders
GLA
Swaptions had 3x by EO March, I would guess we may be at 5x if still holding ie ~$1B
If Bill tweeted he was going to wind the fund up, we would be £35+
Today's near 6% rise could be in anticipation of the value of the Swaptions. Although some strong recoveries across most portfolio holdings today too.
1. Positive outlooks given for almost all holdings. Lowes, Hilton, Dominos, Universal, Howard Hughes, Chipotle, Pacific Railway
2. Fanny Mae Freddy Mac still recapitalising - will be worth a great deal once this process is complete - passage of time will yield the right outcome
3. Interest Rate Swaptions reduces YTD loss by just under half. Bill sees rate raises as a near certainty. Reward is tilted in PSH's favour.
4. Inflation Expectations remain high in Bill's opinion.
5. Tontine the "clock is ticking down" - deal must be done in next 60 days or the money will be returned to investors. This includes money provided by PSH to PSTH. It has to be a great business to go ahead - not any rubbish.
6. Sold Netflix - wrote a letter about that -we're not perfect - recognise as early as possible - saved money by exiting.
7. Bill: We will own these businesses for many years - don't look at positioning for the next 12 months - we are looking at the future stream of cashflows over long periods.
In at 2465p fourth buy deal of five to execute before 10am .
Ft 100 was down -3.22% I saw at 10.45am but closed at a better -1.89%
But this closed at a cheaper 2440p
Well worth a read and great that the hedge has been restored and tripled in value already.
https://www.ft.com/content/7c294c5d-44e7-41fd-8af5-42f4fa3567fd
And boom !
I agree Jjuxi, and there is a history of buy backs (think 2020 was the last time?). I expect the short term focus is very much on monetising the SPAC and concluding that would generate liquidity to support a buy back programme.
I have also been topping up recently. I am very happy with the portfolio but I would like to see effective action on closing the discount to NAV. I didn't see anything new in the recent update in this regard.
By example, the share price is currently up 3% on the first week of 2021 whilst the NAV is up nearly 25%. Bill needs to work out how to get more of that return to shareholders.