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Pershing Square Holdings (PSH)
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Big boy
Posted: 06 May 2021 16:47:39(UTC)
#32

Joined: 20/01/2015(UTC)
Posts: 6,676
Bulldog Drummond;168606 wrote:
TheWurzel;168593 wrote:
Am I correct in thinking that the discount is even more attractive given its holding cash of 18.6%? The 12m average discount of c.28.23% is slightly greater than the current discount (and June last year was over 30% - anybody any feel for cash levels over that period? Or is the cash SPAC related?

The largest Chipotle holding is more than 50% up on its pre-pandemic price, Hilton the second largest is 10% higher than pre-pandemic, the third (Lowe's) has nearly doubled from the same period and the fourth is over 10% higher than pre-pandemic.

I find it strange that they have all done so well - assuming that full re-opening is unlikely to be significantly more profitable than pre-pandemic. Those four positions total over 50% of the holdings, the fees are high and the discount persistent.

But most likely I just don't understand it properly.


I take the argument that returns are more important than fees, and that big discounts are nice, but I just find it difficult to swallow fees in the region of 6% (or even 4% for that matter).

We all know who made money out of the 2+20 funds, and on the whole it wasn't the investors.


Would you prefer to hold the individual investments but pay a 1/3rd more as others seem happy to do this.
The only trouble is they don’t know when to buy and sell the individual shares.
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Mr GL
Posted: 06 May 2021 16:53:36(UTC)
#33

Joined: 18/10/2020(UTC)
Posts: 5,124
https://pershingsquareho...ny-reports/weekly-navs/
Talking about 'high fees' when they returned 11% NAV so far this year, 70% NAV last year, 58% in 2019 is irrelevant in my humble opinion...

https://assets.pershings...t-1.pdf-Letter-Only.pdf

I quite like it as a smaller long term holding - will have volatility

This was an interesting mini-video talking about potential SPAC announcement and what they have replaced Starbucks with https://www.youtube.com/watch?v=0JLF78kdIo8

I have Pershing Square PSH Global Equity 2.6%

I hope I can 'buy on dips' and get to 5% and then tuck it away for a few years... maybe a mini Buffet... I see it as a concentrated long equity portfolio with active disaster hedging - current concern is inflation (Ackman thinks wage inflation coming, Buffet said its already happening...)

Share price looks up 3% YTD with NAV up 11%... the discount is growing wider again but the NAV is heading in the right direction.

I expect it will be a no news slide lower / wider and on news will have sharp jumps upwards so I dint want to wait for news to buy but hope for quiet no news to buy on slide lower...
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Bulldog Drummond
Posted: 06 May 2021 18:00:43(UTC)
#36

Joined: 03/10/2017(UTC)
Posts: 6,253
As I say, I understand the arguments about past returns and discounts, I just find 6% fees & charges hard to swallow.
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TheWurzel
Posted: 06 May 2021 18:40:29(UTC)
#34

Joined: 11/02/2018(UTC)
Posts: 192

Thanks: 170 times
Was thanked: 371 time(s) in 135 post(s)
Mr GL;168609 wrote:
https://pershingsquareholdings.com/company-reports/weekly-navs/
Talking about 'high fees' when they returned 11% NAV so far this year, 70% NAV last year, 58% in 2019 is irrelevant in my humble opinion...


That's pretty selective! The price during 2015 to 2018 (-10%, -14%, -14.12%, 0.54%). How many would have sat through that to enjoy the 45% price appreciation in 2019? Even with that gain, 5 years and still not at break even.
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2 users thanked TheWurzel for this post.
Bulldog Drummond on 06/05/2021(UTC), Keith Cobby on 07/05/2021(UTC)
Mr GL
Posted: 06 May 2021 19:11:11(UTC)
#35

Joined: 18/10/2020(UTC)
Posts: 5,124
TheWurzel;168625 wrote:
Mr GL;168609 wrote:
https://pershingsquareholdings.com/company-reports/weekly-navs/
Talking about 'high fees' when they returned 11% NAV so far this year, 70% NAV last year, 58% in 2019 is irrelevant in my humble opinion...


That's pretty selective! The price during 2015 to 2018 (-10%, -14%, -14.12%, 0.54%). How many would have sat through that to enjoy the 45% price appreciation in 2019? Even with that gain, 5 years and still not at break even.



I think it was those poor returning years that have contributed to this very wide discount and so has created this opportunity.

Agree it is selective - but as it is the last three reporting periods it seems somewhat relevant - to go back further then why not compare the average returns over the life of the fund etc.

Bulldog and I disagree on this - all I care about are the net asset returns and I use these to inform my decision... I dont really spend much time thinking about absolute level of fees - if the returns to the investor in the form of NAV are good enough and I think the discount is too wide then its a positive.
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2 users thanked Mr GL for this post.
Big boy on 06/05/2021(UTC), TheWurzel on 06/05/2021(UTC)
Mr GL
Posted: 07 May 2021 09:58:42(UTC)
#39

Joined: 18/10/2020(UTC)
Posts: 5,124
Ive added a little more now I am Pershing Square PSH Global Equity 3.7%
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Big boy
Posted: 07 May 2021 10:50:00(UTC)
#40

Joined: 20/01/2015(UTC)
Posts: 6,676
Mr GL;168703 wrote:
Ive added a little more now I am Pershing Square PSH Global Equity 3.7%


Excellent stock to buy and sell as close “touch” and no stamp duty.
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Split Cap Jim
Posted: 07 May 2021 15:52:44(UTC)
#42

Joined: 30/04/2016(UTC)
Posts: 235

Thanks: 67 times
Was thanked: 533 time(s) in 178 post(s)
The analysts at Kepler Partners have just published a research note on PSH - so well worth a read if you are interested.
I'm happy to hold a chunk, the excellent NAV returns are after the fees, and for a FTSE100 trust the discount seems excessive and provides some protection.
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2 users thanked Split Cap Jim for this post.
Mr GL on 07/05/2021(UTC), Big boy on 07/05/2021(UTC)
Mr GL
Posted: 07 May 2021 15:55:38(UTC)
#41

Joined: 18/10/2020(UTC)
Posts: 5,124
Big boy;168715 wrote:
Mr GL;168703 wrote:
Ive added a little more now I am Pershing Square PSH Global Equity 3.7%


Excellent stock to buy and sell as close “touch” and no stamp duty.


I added more today - now 4.9%

Link to the Kepler PSH article - https://www.trustintelli...oldings-retail-apr-2021
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1 user thanked Mr GL for this post.
Big boy on 07/05/2021(UTC)
philip gosling
Posted: 07 May 2021 16:48:11(UTC)
#37

Joined: 06/01/2013(UTC)
Posts: 1,191
Bulldog Drummond;168616 wrote:
As I say, I understand the arguments about past returns and discounts, I just find 6% fees & charges hard to swallow.




Yes it makes Fundsmith very very cheap in charges.
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