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Pershing Square USA trades about 20% below NAV as S&P 500 rises
Pershing Square USA was at a roughly 20% discount to its estimated $50.32 NAV per share, according to the fund’s own estimates, as Ackman cited IPO-related technical factors and weaker marketing.
Bill Ackman’s closed-end fund, Pershing Square USA, has not tracked the broader market’s advance since its April launch. While the S&P 500 is up nearly 14% year-to-date, the fund’s shares have continued to fall, trading in the $40 range versus an implied starting price of $50 per share from IPO buyers, according to Yahoo Finance.
Because it is a closed-end structure, Pershing Square USA can trade away from the value of the underlying portfolio. The fund’s estimated net asset value is $50.32 per share, which is about 20% higher than the current market price, creating a persistent discount to NAV.
In its semi-annual report, Ackman described the discount as the fund’s biggest challenge since the IPO, pointing to double-digit divergence as among the widest seen in U.S. closed-end funds invested in public securities. He also pointed to technical factors from the IPO and said the fund’s portfolio composition had been largely unknown early on, making it harder for some closed-end investors to buy.
Ackman later attributed part of the issue to the fund’s performance and communication approach, while the article notes he has also criticized the discount dynamic in shareholder materials. The story additionally mentions an August 12 letter in which Ackman acknowledged issues facing the fund, including elements tied to how the portfolio was positioned for investors, as covered by Yahoo Finance.
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