And billionaire financier Bill Ackman described RFK Jr.’s appearance on Rogan’s podcast as “one of the most powerful and mind opening interviews that I have ever heard.” Recently he said that RFK Jr. “can and will” beat Donald Trump and Florida Gov. train, calling him “really dynamic and credible.” Then there’s former Twitter CEO Jack Dorsey, a Bitcoin obsessive who has tweeted approvingly of Austrian School economist Murray Rothbard and has tended to focus on pet causes like universal basic income while donating to Andrew Yang and Tulsi Gabbard. Some of them lean Republican, while others conform with the very rich person’s tendency of donating widely and strategically, to Democrats and Republicans alike. Venture capitalist Chamath Palihapitiya has donated to everyone from the Democratic Party of Vermont to Ted Cruz to Joe Biden to Evan McMullin. has become an object of fascination for Twitter-addled tech moguls.
#DAVID FINK BILL ACKMAN FREE#
Pershing Square Semi-Annual Letter – June 2022įor all the latest news and podcasts, join our free newsletter here.Peter, if you claim what RFKjr is saying is “misinformation” I am offering you $100,000.00 to the charity of your choice if you’re willing to debate him on my show with no time limit. Pershing Square Holdings’ closed-end fund structure and large insider ownership provide us with the ability to be a truly longterm investor in a world where the vast majority of fund managers are constrained to a shorter-term approach. Investments at higher valuations are destined to generate lower returns. Investors in funds generally commit more capital when funds are generating strong absolute performance.ĭuring the ebullient market which preceded this year’s decline, investors committed more capital to funds which put the money to work at higher valuations. Yet, in each crisis and/or market drawdown, fund managers sell and reduce exposures, rather than increase exposures at more favorable valuations.
It is axiomatic that the lower the price paid, the better one’s long-term returns. This pattern of reducing equity market exposure as stock markets decline occurs in every market disruption, but it is precisely the opposite of what long-term investors should do. As many funds suffered substantial drawdowns earlier this year, they sold stocks to raise capital to meet redemptions, and reduced market exposure as their risk appetites declined. The inherently short-term nature of the investment management industry is a large contributor to stock (and bond) market volatility.
So when the inevitable period of underperformance occurs due to broad-based market movements or otherwise, investors in funds redeem their capital, and their managers become forced sellers. When managers oversee funds that can be withdrawn on short notice, they generally have no choice but to manage for the short term.įurthermore, most investors in funds are fiduciaries who are themselves held to short-term measurements of their own performance. While many investors in funds claim to be long term, they require short-term liquidity from their managers. Many of our colleagues in the industry have told us that they would prefer to invest as we do with their own money, but that their investors’ demands effectively prohibit such an approach While our approach to investing capital is logical and straightforward and has a long-term outperformance record, it is the rare investment manager that can implement such a strategy. In his latest June 2022 Semi-Annual Letter, Bill Ackman discusses the fund manager’s dilemma.
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