Pershing Square Share Discussion Threads

[arja] 02/12/2020 12:58

thanks vacendak. So really you are saying that in effect it has a double discount being the discount to it;s own NAV plus the trusts having a share price which is at a discount to their NAVs . I did not express that well !

[vacendak] 02/12/2020 09:31

@arja
Yes, AGT's discount is the nature of the beast. It invests in companies with big discounts, so... :)

They have the concept of "see through discount", as in discount on AGT and discount on its holdings. There was an interview with the manager a few years ago (cannot remember the link, sorry) during which he said that in the 90s (I think) the trust, BTEM at the time, traded at a mild premium but its holdings at a strong discount. So, when value comes back in style, AGT could trade at a premium.

[arja] 02/12/2020 08:48

Just looked into AGT and notice it has quite a big discount to NAV . I assume that is almost always the case and fairly irrelevant as gap unlikely to be closed in short term . thanks again for drawing my attention to it

[arja] 02/12/2020 08:42

wow , AGT has a lovely uptrending chart and almost a NOR situation . But thinly traded and low volume really as I only trade using CFDs ! ( smile ) . Not allowed by IG with PSH but I use a spreadbet to make a bit .

[arja] 02/12/2020 08:37

look at that . share price taking a breather today due to weaker dow futures but weaker pound helps .

[arja] 02/12/2020 08:35

thanks a lot for comments and I will take a loo

[arja] 02/12/2020 08:35

thanks a lot for comments and I will take a loo

[vacendak] 02/12/2020 08:12

@rivermann
Indeed, AVI runs AGT (the old British Empire Trust) which holds some PSH (second biggest holding at 7.9% of the trust as of October 31st). When they came in, they complained about the structure and the voting rights held by the managers. They tried to twist some arms, did not get all of what they wanted, but there were some improvements.

Then Ackman showed his mastery when the pandemic struck and no more moaning from AVI. To be fair, they did recognise he made the right call and praised him in various factsheets and reports. They seem to be all friendly with him now. PSH has been a steady contributor to the fortunes of AGT for the best part of the year. PSH is exactly what AGT wants to hold: big discount, big value and hope of further gains via closing discount.

[riverman77] 01/12/2020 15:55

There's a fund called AVI Global Trust that holds PSH and if you look through their recent fund commentaries and annual report they provide some good detail on the investment case.

[arja] 01/12/2020 10:08

I listened to Ackman on video above . I guess the risk is that only 10 holdings but
just needs careful monitoring . Will not affect it's prospect of inclusion in the FTSE I suppose .

[arja] 01/12/2020 09:31

interesting and informative comments and for me especially as I focus on charts and just noticed this one a few days ago. About to hit 2500 today i see and hopefully kick on a bit more with the big recovery in US indices

[ceaserxzy] 30/11/2020 19:17

Hear it from the horse's mouth. Here is an interview of Bill Ackman touching on the big discount.

[ceaserxzy] 30/11/2020 18:38

This is still punished for its poor performance a few years back. However, the trust has moved on and has delivered spectacular performance over the last two years with annual return of over 50%. It deserves a premium rating compared to some other high performance trust like lti,sson etc.

The very likely entrance into FTSE100 this week may be the catalyst for the rerating, together with its continuous outperformance (looking at today's performance of psth,fmcc and fnma).

[bmel] 30/11/2020 15:48

Ricky

Both FNMA and FMCC jumped by 25% a week ago last Friday - that may account for some of the discount reduction ?

[riverman77] 30/11/2020 13:36

The big discount predates the SPAC, so I don't think that is the issue. My view is that Ackman had a couple of very bad years with some high profile disappointments. Even though his long term performance is excellent, and recent performance very strong, investors may still view him as a bit unpredictable. However, the fund is much more mainstream now, with no short positions as far as I'm aware.

PSH is a clear anomaly IMV. If you look at all the other investment trusts on big discounts, they are usually in very illiquid or obscure assets, with questionable corporate governance and usually poor performance. None of this applies here so I would expect this to re-rate eventually. It's very unusual to have a big discount on a large cap US equity fund. Perhaps inclusion in the FTSE 100 could be the catalyst.

[rickyl1] 30/11/2020 13:24

I think if you had to pay the performance fee then you've obviously done very well anyway. The big catalyst short term is PSTH and the possibility of a good outcome for FNMA and FMCC.

[bmel] 30/11/2020 13:19

There is uncertainty about what the SPAC will invest in. Once that becomes clear the discount should drop, probably significantly.

As noted by other posters this should be in FTSE 100 very soon and that will drive an array of fund buying.

[arja] 30/11/2020 13:00

found the answer and partly the huge performance fee of 16% and also higher annual fee . however , still seems undervalue

[arja] 30/11/2020 09:23

a NOR situation I see and could be much more in this one . I was not allowed to buy with IG markets using a CFD dam it and had to buy with a spreadbet !

[arja] 29/11/2020 21:16

why is this trust trading at such a big discount to NAV ? Am I missing the obvious ,. any comment appreciated and the discount was even higher a week ago ?

[thruxie] 27/11/2020 23:49

Another nice rise today hxxp://www.stockchallenge.co.uk/ftse.php is showing PSH as 95th and number one contender.

I think it's when not if we make it into the FTSE 100.

[charlie] 27/11/2020 13:38

At 2430 I make the market cap £4.98bn. That's rank 89 in the FTSE100 as of today.

Automatic admission if it has that rank 90 or lower on the review date next month.

[rambutan2] 26/11/2020 22:02

Shares close at 2350p on the bid.

PSH NAV per share as of close of business on 24 November 2020 was 43.00 USD / 32.19 GBP and year-to-date performance was 60.7%.

[rickyl1] 13/11/2020 08:41

Director buy of over £100k, always nice to see.