Bill Ackman to Launch Public Hedge Fund
William A. Ackman, an American hedge fund manager, founder and CEO of hedge fund Pershing Square Capital Management LP., is planning to tap the London Stock Exchange with the launch of a public hedge fund.
While
hedge funds typically raise funds privately, the founder of the $13
billion Pershing Square Capital Management is planning to tap the public
stock market. Mr. Ackman is aiming to raise billions of dollars for a
closed-end fund that could list on the London Stock Exchange as soon as
this summer, according to three people briefed on the matter but not
authorized to discuss it.
Mr.
Ackman, 48, was in London in late April to drum up support among
European investors for the fund, according to two of the three people
who were briefed.
By
raising money in a separate structure from his hedge fund, he can lock
up and put to use money that is not subject to investor redemption
requests. Investors in the publicly listed entity would be betting on
his success as an activist investor. And, unlike most investors in hedge
funds, they would be able to sell their shares in the market whenever
they wish.
While
hedge funds typically insist on restricting investors’ ability to cash
out, fund managers have long expressed frustration that when windows do
open, investors move too quickly to pull their money during tough times.
Source: New York Times
