Bill Ackman’s closed-end fund PSUS opens at an 80-cent dollar valuation, signaling investor skepticism over its Berkshire-style model.
Pershing Square USA (PSUS), the new closed-end fund led by billionaire investor Bill Ackman, began trading at a 20% discount to its IPO price. The fund, designed to mimic Warren Buffett’s Berkshire Hathaway (BRK.A, BRK.B) model, raised $2.9 billion in its public debut but failed to hold its offering price in early trading.
Unlike Berkshire, which operates a diversified conglomerate of businesses, PSUS centers on Ackman’s investment in Howard Hughes Holdings (HHH), a real estate and insurance firm. The discount reflects market doubts about the fund’s ability to replicate Buffett’s long-term success, particularly as Berkshire’s new leadership under Greg Abel faces its own challenges.
The underperformance contrasts with Berkshire’s historical resilience, where Buffett’s strategy of acquiring operating companies and public equities delivered consistent returns. PSUS’s structure and concentrated bets may limit its appeal to investors seeking broad diversification.