The Morning Brief: A Rough September for Ackman’s Pershing Square

So much for Bill Ackman’s rebound. After posting 2.7 percent and 5.8 percent gains in July and August, respectively, his New York-based Pershing Square Capital Management has slipped significantly already this month. The firm’s publicly traded Pershing Square Holdings fund is down 5.2 percent in just the first 13 days of September. It didn’t help that during that period Pershing Square’s huge bet on Valeant Pharmaceuticals International alone was down 5 percent.


Talk about a swift reversal of fortune. Kingdom Ridge, the small hedge fund co-founded in 2007 by former SAC Capital employees Christopher Zepf and Brian Thonn, gained about 8.9 percent in the first half of the year. Since then it has been downhill, however. The fund suffered sharp losses in the past two months and is now off by around 6 percent for the year through August.


Shares of hedge fund favorite Apple surged another 3.4 percent, to close at $115.56. The iPhone and iPad maker, which on Thursday was the most active stock, is the fourth-most-popular stock among hedge funds.



Amid all the discussion surrounding hedge fund fees, data tracker HFR reported that average industry-wide fees were unchanged in the second quarter compared with the previous period. According to the Chicago firm, the average hedge fund management fee remained at 1.50 percent, while the average incentive fee remained at 17.6 percent.