Pershing Square Capital Management, the hedge fund firm founded by Bill Ackman, finished 2022 with a 9% loss despite raking in some $2.7 billion from winning interest rate bets over the course of the year, according to a report by Reuters.
Pershing Square Capital Management, the hedge fund firm founded by Bill Ackman, finished 2022 with a 9% loss despite raking in some $2.7 billion from winning interest rate bets over the course of the year, according to a report by Reuters.
The fund cites an investor presentation as revealing that the firm lost 8.8% of its net asset value in 2022, its worst result since 2016, while its share price fell 14.6%, as a widespread stock rout saw the S&P 500 slump almost 20% over the year.
Winning Interest rate wagers in the form of derivatives known as swaptions, a bet on volatility in rates markets, the fast food company Restaurant Brands International, energy hedges and share buybacks all helped Pershing Square stem losses, according to the presentation, which also revealed that the company did not charge a performance fee in 2022.
