Bill Ackman to Launch Public Hedge FundWilliam 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