Bill Ackman, the billionaire investor, is planning to use his social media presence and a Warren Buffett–like annual meeting to bolster his new investment fund.
What Happened: Ackman is currently promoting a U.S.-based investment fund, Pershing Square USA, which is set to go public. The fund, with a potential value of up to $25 billion, is expected to be one of the largest IPOs ever, competing with major entities like Saudi Aramco and Alibaba, reported Financial Times.
He has been using his significant social media following, which has grown over the past year due to his vocal opinions on political and social issues, to attract potential investors.
Ackman has been discussing the fund with potential investors, citing his over 1 million followers on a social media platform and comparing the fund to companies that would trade at a valuation of at least two times the book value of its assets.
"I have built a relatively large following on Twitter, or X, over time and used it to discuss a number of topics but, historically, for regulatory reasons, have not been able to discuss investment activity. I will be completely unrestricted in terms of my ability to update our shareholders about developments in the portfolio," Ackman informed shareholders during a public presentation included in the IPO roadshow.
Moreover, Ackman plans to hold an in-person annual shareholder meeting for the fund’s investors, similar to Berkshire Hathaway‘s annual gathering hosted by Buffett. He also intends to use public platforms to discuss his investment strategies and large bets he may occasionally put on to protect against a severe plunge in financial markets.
Pershing Square USA is registered as a “40 Act Fund,” affording it fewer regulatory communication restrictions compared to Pershing Square Holdings.
"The fund is just geared to retail," said an investment manager who has had discussions with Ackman. "He can have direct engagement in the U.S., that's why he thinks it will trade up. He wasn't allowed to tweet about his London-listed fund," added the investor.
Pershing Square Holdings did not immediately respond to Benzinga's request for comment.
Why It Matters: Ackman's decision to leverage social media for the promotion of Pershing Square USA is a strategic move inspired by his admiration for Buffett. Ackman has recently cited Buffett as his “unofficial mentor,” particularly noting Buffett’s transition from private partnerships to managing Berkshire Hathaway.
Additionally, Ackman's recent endorsement of former President Donald Trump has drawn significant attention. This endorsement, announced on the social media platform X, has sparked both support and criticism, highlighting Ackman's influence and controversial presence online.
Moreover, Ackman's social media strategy has not been free from criticism. Mark Cuban recently criticized Ackman for pandering to his social media followers, questioning the objectivity of his political endorsements.
Lastly, Ackman's move to take Pershing Square public follows a significant valuation deal. In May, Ackman announced plans to take the firm public by 2025, following a $10.5 billion valuation deal, according to a report. This move is part of a broader strategy to attract billions more in assets, focusing on undervalued large company stocks.
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Image Via Wikimedia Commons
This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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