Bill Ackman’s flagship vehicle, Pershing Square Capital Management, has started 2026 on the back foot, with its main listed fund, Pershing Square Holdings, down 11.1% year to date through 24 February, according to a report by Barron’s.
The decline contrasts with a near 1% positive total return for the S&P 500 over the same period and comes at a sensitive time for Ackman, who is reportedly preparing a potential IPO of his management company alongside a new US-focused closed-end fund.
Pershing Square Holdings, which trades in London and over the counter in the US, accounts for roughly $13bn of the firm’s approximately $20bn in assets under management. The fund’s early losses reflect weakness in several of its core holdings, including Fannie Mae, Uber Technologies, Amazon.com and Howard Hughes Holdings.
The softer performance could complicate efforts to secure a premium valuation for Pershing Square’s management company. Ackman sold a 10% stake in the business in 2024 at a $10.5bn valuation, and media reports have suggested he may seek a significantly higher valuation in a public offering this year.
In addition, Pershing Square is said to be exploring a renewed launch of Pershing Square USA, a US closed-end fund, after a previous attempt in 2024 was shelved due to insufficient demand. Marketing a new vehicle may prove challenging given that many listed closed-end funds, including Pershing Square Holdings, trade at substantial discounts to net asset value. The European-listed fund recently changed hands at around a 25% discount to NAV.
Performance will be a key factor in any IPO narrative. The closed-end fund charges a 1.5% annual management fee and a 16% performance fee, subject to adjustments. In 2025, incentive fees totalled $489m, significantly exceeding $208m in base fees, after the fund delivered a 20.9% net return. A prolonged drawdown in 2026 could materially reduce performance fee income, potentially weighing on the valuation of the management company.
Further headwinds include a broad sell-off in listed alternative asset managers such as Blackstone Inc, KKR & Co, and Ares Management, which has compressed sector multiples.
Ackman’s increasing exposure to Howard Hughes also adds complexity. Pershing Square now controls roughly half of the real estate developer and is seeking to reposition it as a diversified holding company following its acquisition of insurer Vantage Group. Howard Hughes shares are down around 9% this year, amid a weaker outlook for its core real estate operations.
