Pershing Square founder Bill Ackman is reportedly planning a new hedge fund strategy designed to capitalise on investor complacency, echoing the “doomsday” trades that netted Pershing Square billions during the pandemic, according to a report by the Financial Times.
The proposed vehicle would make asymmetric bets against prevailing market narratives, using derivatives and macro positions similar to those that produced a $2.6bn gain for Pershing Square in 2020. Unlike his flagship $20bn fund, the new strategy would initially park capital in short-term US debt before deploying it on large credit and macro trades.
The move comes as Pershing Square’s main fund has experienced volatility, losing over 16% through March, and ahead of Ackman’s plans to list the firm publicly. The new fund could offer an avenue to boost fee income while exploring concentrated, high-conviction trades outside the core portfolio.
Ackman has also been pursuing broader investments, including stakes in Howard Hughes Holdings and a potential acquisition of Universal Music Group, as part of a vision to build a diversified conglomerate.
