Bill Ackman’s Pershing Square named one of the world’s top hedge funds

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by Shannon Saylor

Bill Ackman’s Pershing Square Capital Management has rejoined the list of the world’s 20 best-performing hedge funds, nine years after being dropped from the ranking.

Pershing Square ranked 20th, ahead of Louis Bacon’s Moore Capital Management, according to LCH Investments.

LCH said the New York-based fund, which has $17.9 billion in assets under management, made a “remarkable comeback” in 2023, generating $3.5 billion in annual net income.

The company, which Ackman founded in 2004, went public in 2015 after suffering a series of heavy losses related to bold investments in Procter & Gamble, J.C. Penney and nutritional supplement company Herbalife Nutrition. I got out of it. As a result, losses of $600 million, $500 million, and $760 million were incurred. Each suffered losses, according to LCH research previously reported by MarketWatch.

But over the past three years, Pershing Square banked about $12.3 billion in profits. This represents approximately two-thirds of the profits generated since its inception.

Thus, Mr. Ackman’s firm has returned to LCH’s ranking of top-performing funds, but according to MarketWatch, this year’s overall fund net income will be worth $67 billion in 2023 alone, compared to last year’s hedge fund sector. This is an astounding 31% of the total profit.

Meanwhile, Ackman, 57, whose net worth is reported by Forbes magazine to be $4.1 billion, recently became a former ex-student in response to reports that anti-Semitism was on the rise on campus in the wake of Hamas’ attack on Israel on October 7. He is running a campaign against Harvard University President Claudine Gay.

Gay resigned earlier this month after criticism of his responses to Congressional hearings on anti-Semitism and accusations that his academic work included examples of miscredited work. Mr. Ackman is accused of “bullying” Mr. Gay into resigning his position, but Mr. Ackman countered that his wealth gives him the ability to “tell the truth.”

In LCH’s Top 20 ranking, Citadel, led by hedge fund mogul Ken Griffin, took the number one spot for the second year in a row.

Unsurprisingly, the company posted $74 billion, its highest overall profit since its 1990 founding.

Citadel moved to the top of LCH’s 2023 rankings by defeating Ray Dalio’s Bridgewater Associates, which ranks fourth.

Bridgewater lost $2.6 billion last year, the worst of the top 20, as Mr. Dalio sought to distance himself from exposure to explosives.

The book, titled “The Fund: Ray Dalio, Bridgewater Associates, and the Unraveling of a Wall Street Legend,” which hit bookstores in November, depicts the 74-year-old billionaire as a sharp-witted man who clings to his beliefs. He explains that he is Elbow’s boss. It’s called the “radical transparency” mantra, and it was used to solve what became known internally as the “pee incident” after pee was found on the men’s room floor. I used it.

Aside from Bridgewater, Caxton, a New York City-based hedge fund with $12 billion under management, was the only one of LCH’s 20 companies to post a loss.

Chris Horne’s The Children’s Investment Fund Management made the biggest profit in 2023, with bank net profits worth $12.9 billion, according to LCH.

As a result, TCI rose seven places, rising from 14th place in 2022 to 7th place in 2023.