Morning Brief: Fitch Warns About Pershing Square Holdings

The ratings agency says Bill Ackman’s public fund suffers from extended underperformance that has “weakened the franchise” of its investment manager.

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Credit rating agency Fitch Ratings revised its rating outlook for Pershing Square Holdings, Bill Ackman’s public hedge fund, to negative from stable, citing the fund’s “extended investment underperformance” and its frequent stock buyback activity. “They have boosted the fund’s leverage and reduced the amount of cushion that it has to withstand additional market value declines,” Fitch added in its report.

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