Pershing Square Share Discussion Threads

[cfro] 29/10/2019 08:12

Share buy-back program to continue with another $100m.

[haroldthegreat] 10/10/2019 07:45

Have just looked at this for the first time since i opened the thread .not a bad return over 2.5 years !

[nimbo1] 29/7/2019 13:31

ive just bought my holding back given currency movement and underlying holdings here. Its certainly an unloved vehicle mainly down to the main man himself i think....

[cfro] 27/7/2019 09:52

Well, SBUX out with some very good results and up 9% yesterday.

[cfro] 26/7/2019 09:43

Is there nobody still bullish here then?

Agree the bonds issue was a bit left field.

US stock markets are still trending upwards and Bill's portfolio of SBUX, ADP, QRS, UTX, Hilton etc are all making new highs.

Given the near 30% discount to NAV means we can buy these highly liquid portfolio of quality US stocks very favourably.

Share buy back still in progress too with only 23% bought back.

[contrarian joe] 25/7/2019 19:44

Thanks Rambutan & Dave,not a subscriber to share mag,sold my holding last week on the grounds of US looking very extended,if I was still holding would almost certainly sell on that news.

[rambutan2] 17/7/2019 02:17

Hear hear!

[contrarian joe] 05/4/2019 17:35

Latest nav gbp £18.11,discount around 24%,it,s had a cracking 12 months nav performance & share price up 60% from 2018 lows.

[topvest] 23/11/2018 08:49

I've opened a small position here. They performed fairly well in the last bear market, so thought I would get in for a few now and maybe add more later. Interestingly, its the number 1 holding of British Empire Trust, and they know a thing or two about undervalued trusts.

[rambutan2] 13/6/2018 17:28

Noted. Nick Train's views on (big holding for him and PSH) Mondelez in LTI's recent annual report:

Mondelez International. Confectionary and biscuits are "good" food brands - affordable treats that have successfully resisted own-label copycats. What's more, over 70% of Mondelez' sales are outside the US, meaning it is less exposed to the malign pressures on processed food brands there. Roughly 40% of sales derive from Emerging Markets. Our appreciation of all this has encouraged us to add more to LTL's holdings of the company over the last 18 months at lower and lower prices. I persist in regarding this as good news - that we are buying more of a good thing at better values - but it is disconcerting to see the shares drift in this way. Investors have got really quite bearish about food. The company hopes to generate $2.8bn of free cash in 2018. I would value that at a 3% discount rate, for a warranted equity value of MDLZ of $93bn - compared to the current $55bn market value.

[technofiend] 11/5/2018 19:09

Pershing Square Holdings, Ltd. Announces Results of $300 million Tender Offer for Own Shares

Pershing Square Holdings, Ltd.

Pershing Square Holdings, Ltd. (“PSH” or the “Company”) (LN:PSH) (NA:PSH) today announces that the tender offer (the "Tender Offer") for up to $300 million in value of the Company's public shares (the "Public Shares") closed at 1:00 p.m. BST on 10 May 2018. Terms used in this announcement have the meaning given in the circular regarding the Tender Offer issued by the Company on 25 April 2018 (the "Tender Document").

The Strike Price for the Tender Offer is $13.47 per Public Share. A total of 22,271,714 Public Shares will be acquired by the Company in the Tender Offer.

The Strike Price was determined on the basis of the Reference NAV per Public Share on 9 May 2018 of $16.94 per Public Share and the numbers of Public Shares validly tendered at each tender price, as described in the Tender Document. The Strike Price for the Tender Offer represents a 20.5% discount to the Reference NAV.

[rambutan2] 29/4/2018 20:23

I bought a few at the lows recently. Will not be bothering with the tender.



Recent AR:

[vacendak] 26/3/2018 21:12

Things are going downhill in general at the moment. Sorry, they call the phenomenon "volatility" nowadays.

This type of fund is likely to get dumped first. Sure, the shenanigans about the tender are not helping but British Empire is still believing in it...

[makinbuks] 26/3/2018 13:32

Just so unloved this. Discount now looks around 25%. Strength of sterling not helping. The tender offer doesn't seem to be working

[davebowler] 01/3/2018 08:35

Liberum;
Pershing Square Holdings (Mkt Cap £2,251m)

Up to $300m tender offer directly by the company

Event

The Board of Directors of Pershing Square Holdings (PSH) intends that PSH should conduct a tender offer to purchase up to an aggregate amount of $300m of its publicly traded shares (Tender). PSH anticipates that the Tender would be structured as a Dutch auction which is priced at a discount to PSH’s prevailing NAV per share.

This is after PSCM Acquisition (PSCMAC) withdraw its previously proposed tender offer due to the Dutch Authority for Financial Markets interpretation of certain applicable rules regarding the proposed tender offer, which, in PSCMAC’s view, make the tender offer not feasible.

The Tender will be subject to applicable shareholder approvals, including a vote to remove the current 4.99% shareholder ownership limit, which will be sought at PSH's upcoming AGM on 24 April 2018. It is expected that the Tender would be launched shortly following the AGM and would be financed from PSH's cash on hand.

PSH is trading at a 19.7% discount to its 20 February 2018 NAV per share.

[vacendak] 20/1/2018 20:54

More Bill Ackman/Pershing Square in the FT... and they still do not like him! :)



Bill Ackman/Pershing: the biter bit
Champion of shareholder rights should know how to treat his own shareholders
Bill Ackman finds himself in an uncomfortable position © Bloomberg

January 18, 2018
Bill Ackman has a history of lambasting underperforming businesses. A revolt by investors in Pershing Square Holdings, the activist fund he manages, is giving him a taste of his own medicine. Their anger will not be quelled by concessions over a plan to more than double management’s stake in the $3.4bn vehicle, which is listed in London and Amsterdam.

The proposal has enraged some shareholders, who claim it puts the interests of Mr Ackman and his fellow fund managers ahead of everyone else. They want PSH to do big buybacks instead. Their view is coloured by a 42 per cent drop in the shares of PSH, a closed-end fund, since it floated in 2014. The stock regularly trades at a 20 per cent discount to net asset value.

Indignation is emanating from the Ackman camp, too. Managers believe they would be registering a vote of confidence by spending $300m on PSH shares. They blame the rebellion on “closed-end fund arbitrageurs”, who buy fund shares while shorting stocks the fund has invested in. These smooth operators make a profit when a buyback narrows the price gap between the two.

Mr Ackman’s position nevertheless looks uncomfortable. A champion of shareholder rights should be beyond reproach in his treatment of his own shareholders. That is not consistent with getting a board waiver to breach a 4.9 per cent ownership limit, even if other investors can apply as well.

Mr Ackman has, meanwhile, narrowed the price range at which he is willing to buy shares from the market. Cynics will suspect that means he was seeking to buy stock too cheaply before. In another concession, there will be a shareholder vote on whether to abolish the 4.9 per cent ownership limit. But this should ideally precede rather than follow the tender.

The row involves mind-bending arguments over price signalling. The lesson is simple; no underperforming boss is immune from shareholder dissent. Activist, heal thyself.

[twixy] 18/1/2018 21:51

The NAV continues to drop whilst the US indices make record highs....BA losing his touch?!?

[makinbuks] 18/1/2018 14:17

Improved tender offer in response to the obvious point above

[makinbuks] 04/1/2018 12:35

If you hold these you do so in the hope that a)Mr Ackman gets his groove back (as the FT note above) and b) that the discount will narrow. On the latter it is currently narrower than it has been at some points since the float at c. 18%. Why would you tender your shares for a maximum 3% gain on todays market price and potentially less than the market price if the discount from NAV was towards the 24% end? Makes no sense

[127tolmers] 04/1/2018 09:59

Today's announcement gives a tender range of 24% - 16% discount. At 16% discount to NAV the tender price would be £10.84 vs current NAV of £12.90 and a current share price of £10.54.

[127tolmers] 03/1/2018 17:48

Historically it traded at under a 10% discount to NAV. If these are the current aspirations then a significant price rise is on the cards.

[twixy] 03/1/2018 09:58

Anyone got any thoughts on the proposed tender offer? Looks like it is for roughly 10% of the current stock. Current NAV of GBP 12.90 and underlying price of GBP 10.48 as I type.