Bill Ackman to Launch New Investment Fund for Retail Investors with Lower Fees and Faster Access

Bill Ackman, the founder of Pershing Square, is preparing to launch a new investment fund aimed at providing retail investors with access to a strategy similar to his existing hedge fund but at a lower cost and with quicker capital access, according to a report from Reuters.

This new fund, named Pershing Square USA, will be listed on the New York Stock Exchange and will be open to a wide range of investors, including retail investors, pension funds, and endowments, who are typically excluded from hedge fund investments. The fund will have no minimum investment requirement, making it accessible to a broad audience. It will charge a flat annual fee of 2% after the first year, significantly lower than the typical performance fees charged by traditional hedge funds, which can range from 15% to 30%.

One key feature of this new offering is that it will provide investors with quicker access to their capital, a distinct advantage over traditional hedge funds that often lock up investments for long periods. This feature is expected to attract not only individual investors but also large institutional clients, such as state pension funds, who value liquidity.

The fund will be managed by Ackman, along with Ryan Israel, Pershing Square’s Chief Investment Officer, and the rest of the firm’s team. Ackman’s strong social media following could also help him raise capital for the new fund, as he seeks to democratise access to his successful investment strategies.