Pershing Square Founder Bill Ackman is set to launch a new US investment portfolio that will offer retail investors access to an investment strategy that mimics his existing hedge fund but with lower fees and faster access to capital, according to a report by Reuters.
The report cites a regulatory filing as revealing that Pershing Square USA will be listed on the New York Stock Exchange and available to anyone who can invest in the US, including pension funds, endowments and retail investors who are normally excluded from hedge funds.
There will be no minimum investment for the new fund, which will charge a flat fee of 2% every year after the first year, far lower than the 15% to 30% performance fees charged by many hedge funds.
Ackman could potentially tap his 1.2m followers on social media platform X for capital for the fund which will also allow investors to withdraw their cash more quickly than typical hedge funds. Easier access to capital is likely to appeal to state pension funds and other institutions as well as retail investors.
The new, which will be structured as a closed-end fund that raises money through an initial public offering, with its shares then trading on the exchange, will be managed by Ackman, Ryan Israel, the firm's CIO, and other members of the Pershing Square investment team.
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