Pershing Square Hldg Pershing Square Holdings, Ltd. Releases Monthly Net Asset Value and Performance Report for December 2018

 
TIDMPSH 
 
 

Pershing Square Holdings, Ltd. (LN:PSH) (LN:PSHD) (NA:PSH) today released the following regular monthly Net Asset Value (NAV) and Performance Report for the month of December 2018. The information has also been posted to the PSH website, www.pershingsquareholdings.com. Monthly net asset value and performance are calculated at the close of business on the last business day of the month.

 
   PERSHING SQUARE                                           PERSHING SQUARE 
   CAPITAL 
   MANAGEMENT, L.P. 
                                                             HOLDINGS, LTD. 
                                                             Portfolio Update 
   December 31, 2018 
   Summary Results(1)                                        Number of Positions(2) 
                       December        YTD 2018 
   Gross Performance   -10.6%          0.7%                  Long                                11 
   Net Performance     -10.8%          -0.7%                 Short                               0 
   NAV/Share (in USD)  $17.30                                Total                               11 
   NAV/Share (in GBP)  GBP13.57 
   Equity & Debt                                             Portfolio Composition by Sector(5) 
   Exposure 
   Composition 
   By Market Cap 
   (3)  (4) 
                       Net Portfolio   Long    Short 
   Large Cap           110%            110 %   0        %    Business Services      RE Corp. 
   Mid Cap             18%             18  %   0        %    Financials             Restaurant 
   Small Cap           0%              0   %   0        %    Hospitality            Retail 
   Total               128%            128 %   0        %    Industrials/Chemicals 
   Note: Large Cap >= 
   $5b; Mid Cap 
   >= $1b; Small 
   Cap < $1b 
   Assets Under                                              Notional Credit Default Swap Exposure 
   Management 
   Pershing Square                         $   3,833.0M      Single Name & Sovereign CDS       $ 0.0M 
   Holdings, 
   Ltd. AUM(6) 
   Total Strategy                          $   6,205.8M 
   AUM(7) 
   Total Firm AUM(8)                       $   6,818.7M      Total CDS                         $ 0.0M 
 
 
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.All investments involve the possibility of profit and the risk of  loss, including the loss of principal. This document does not  constitute 
an offer to sell or the solicitation of an offer to  purchase any security or investment product. All information is  current as of the date hereof and is subject to change in the future. 
(1) Performance results are presented on a gross and net-of-fees  basis. Net returns reflect the deduction of, among other expenses,  management 
fees, brokerage commissions, administrative fees, and  accrued and/or crystallized performance fees, if any, and include  the reinvestment of 
all dividends, interest, and capital gains.  Net returns reflect the performance of the Company's Public  Shares. Depending on the timing of an 
individual investor's  specific investment, net performance for an individual investor  may vary from the net performance as stated herein. 
Gross returns  reflect the performance of the Company's shares in the aggregate  and are presented before the deduction of management fees and 
performance fees, if any. In May 2018, the Company purchased and  cancelled 22,271,714 Public Shares pursuant to the tender offer  announced 
on April 25, 2018 (the "Tender Offer"). The positive  impact on performance of the Tender Offer is reflected herein.  Performance data and other information contained herein are  estimated and unaudited. Net performance is a geometrically  linked, time-weighted calculation. 
(2) Reflects the number of positions in issuers in which the  Company has previously publicly disclosed an investment, which  occurs after the Company 
has completed its accumulation. Cash,  cash equivalents, direct or indirect currency or other hedges and  income/expense items are excluded. Multiple 
financial instruments  (for example, common stock and derivatives on common stock)  associated with one (1) issuer count as one (1) position. A 
position that is included in the number of positions will be  removed from the table only if the investment becomes 0.0% of the  portfolio. 
(3) For the purpose of determining the equity and debt exposures,  investments are valued as follows: (a) equity or debt is valued at  market value, (b) options referencing equity or debt are valued at  market value, (c) long call options and 
short put options (or  vice-versa, short call options and long put options) held on the  same underlying issuer and with the same strike and same expiry  are grouped together and treated as synthetic equity positions,  and are valued at 
the market value of the equivalent long equity  position (or vice-versa, the equivalent short equity position),  and (d) swaps or forwards referencing equity or debt are valued at  the market value of the notional equity or debt underlying 
the  swaps or forwards. Whether a position is deemed to be long or  short is determined by whether an investment has positive or  negative exposure to price increases or decreases. For example,  long puts are deemed to be short exposure. 
(4) Includes all issuer equity, debt, and derivatives related to  issuer equity and debt, and associated currency hedges. Cash, cash  equivalents, direct or indirect currency or other hedges and  income/expense items are excluded. The market values of associated 
currency hedges are included as part of the associated investment.  In the event that there is a change in market cap category with  respect to any non-publicly disclosed position, this information  is not updated until such position is publicly disclosed. 
(5) Portfolio composition is reflective of the publicly disclosed  portfolio positions as of the date of this report. A position in  an issuer is only assigned to a sector once it has been publicly  disclosed. 
(6) "Pershing Square Holdings, Ltd. AUM" equals the assets under  management of Pershing Square Holdings, Ltd. Any performance fees  crystallized as of the end of the year will be reflected in the  following period's AUM. 
(7) "Total Strategy AUM" equals the aggregate assets under  management of Pershing Square, L.P., Pershing Square  International, Ltd., Pershing Square II, L.P. and Pershing Square  Holdings, Ltd. (collectively, the 
"Core Funds"). Redemptions  effective as of the end of any period (including redemptions  attributable to crystallized performance fees/allocations, if any)  will be reflected in the following period's AUM. 
(8) "Total Firm AUM" is the aggregate of Total Strategy AUM and  the assets under management of Pershing Square VI Master, L.P.  which operates as a co-investment vehicle investing primarily in 
securities of (or otherwise seeking to be exposed to the value of  securities issued by) Automatic Data Processing, Inc. ("PSVI")  without double counting investments by any Core Fund in PSVI. 
Note: Each Public Share in the Company carries at all times one vote  per share. The total voting rights in the Company ("Total Voting  Rights") may vary over time given the capital and voting structure  of the Company. As of December 31, 2018, Total Voting 
Rights were  444,069,631. There are 216,616,094 Public Shares, 4,626,817  Management Shares and 1 Special Voting Share (held by VoteCo)  outstanding (the share classes have 1 vote, 1.0752 votes and  222,478,885 votes per share, respectively). 
Under the Dutch Financial Supervision Act (Wet op het financieel  toezicht), anyone who, directly or indirectly, acquires or  disposes of shares in the Company and holds voting rights  reaching, exceeding or 
falling below certain thresholds (including  3%, 5% and 10%) of the Total Voting Rights is required to notify  the Netherlands Authority for the Financial Markets (Stichting  Autoriteit Financële Markten). 
 
In addition, under the Company's Articles of Incorporation, a  person is required to notify the Company of the number of the  Public Shares it holds or is deemed to hold (through such person's 
direct or indirect holding of financial instruments) if this  number reaches, exceeds or falls below 3%, 4%, 4.25%, 4.50%, 4.75%  or 5% of the total number of outstanding Public Shares. 
As of the date of the placing of the Public Shares, the total offset  amount, which is part of the performance fee calculation, was $120M.  As of December 31, 2018, the offset 
amount was reduced by  approximately $19.2M to $100.8M. The performance fee that may be  charged from time to time on fee-bearing shares equals 16% of NAV  appreciation 
minus the "additional reduction." The additional  reduction is equal to 20% of the aggregate performance  allocations/fees earned by the investment manager on the gains 
of  certain other funds managed by the investment manager plus any  amount of additional reduction carried forward from the previous  period ($2.9M as of December 
31, 2018), and is calculated after  giving effect to the offset amount. The offset amount offsets the  additional reduction until it is fully reduced to zero. As of the 
date of the placing, the total offset amount was set by reference to  the sum of the fees and other costs of the placing and admission of  the Public Shares, as 
well as commissions paid to placement agents  and other formation and offering expenses prior to admission that  had been borne by the investment manager. The investment 
management  agreement between PSH and the investment manager was amended on  December 1, 2016 to remove any accretion in the computation of the  offset amount. 
 
 

About Pershing Square Holdings, Ltd.

Pershing Square Holdings, Ltd. (LN:PSH) (LN:PSHD) (NA:PSH) is an investment holding company structured as a closed-end fund that makes concentrated investments principally in North American companies.

MEDIAMaitlandSeda Ambartsumian/Sam Turvey [phone] [e-mail]

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