Thanks OB. Another one to maybe compare/contrast with this is Canadian General Investments. Also sitting on a huge discount but I think without the derivatives
I'm really surprised that you covered such a big company. PSH is actually my biggest holding. I find it very difficult to make a case to buy other investment trusts on similar discounts, because the accuracy of other trusts cannot compare to PSH. Most other trusts in the renewable private equity or property sectors hold illiquid and opaque assets whose value is very difficult to accurately assess.
PSH just holds about 10 large businesses that can be sold at any time with ease.
The track record is also excellent.
How can you make a case to buy Augmentum, PSDL, Pantheon international, Crystal Amber, Chrysalis, FGEN, Warehouse Reit, Riverstone Energy etc when you can receive roughly the same discount with significantly less risk?
My only discomfort is with the lack of diversification. UMG and Alphabet make up 45% of the fund. The buyback announced today is also less than 1% of its market cap so unlikely to move the price very much.
Thanks for going through the holdings - I found that it isn't that straightforward to find out what they are from https://pershingsquareholdings.com. I had recently topped up when I found your substack.
The ongoing mystery with #PSH is the persistent discount. Most odd when it holds listed stocks. However, it has been like that for years and there's probably a good chance that the discount will continue. Perhaps best to ignore the discount in that case.
Excellent write up! Thank you.
Thanks OB. Another one to maybe compare/contrast with this is Canadian General Investments. Also sitting on a huge discount but I think without the derivatives
CGI unfortunately has a huge spread.... Your down 5% when you buy it.
I'm really surprised that you covered such a big company. PSH is actually my biggest holding. I find it very difficult to make a case to buy other investment trusts on similar discounts, because the accuracy of other trusts cannot compare to PSH. Most other trusts in the renewable private equity or property sectors hold illiquid and opaque assets whose value is very difficult to accurately assess.
PSH just holds about 10 large businesses that can be sold at any time with ease.
The track record is also excellent.
How can you make a case to buy Augmentum, PSDL, Pantheon international, Crystal Amber, Chrysalis, FGEN, Warehouse Reit, Riverstone Energy etc when you can receive roughly the same discount with significantly less risk?
My only discomfort is with the lack of diversification. UMG and Alphabet make up 45% of the fund. The buyback announced today is also less than 1% of its market cap so unlikely to move the price very much.
Thanks for going through the holdings - I found that it isn't that straightforward to find out what they are from https://pershingsquareholdings.com. I had recently topped up when I found your substack.
The ongoing mystery with #PSH is the persistent discount. Most odd when it holds listed stocks. However, it has been like that for years and there's probably a good chance that the discount will continue. Perhaps best to ignore the discount in that case.
I've followed PSH for awhile. Unfortunately Ackman is so ultra-MAGA and "Israel can do whatever it wants" that my conscience won't allow me to invest.
+1 for CGI, where I understand the big issue is Canadian withholding taxes. (so the discount will never really narrow)
I think Ackmann is a good guy. But getting involved in politics might mean he's less focused on investments.
Thanks for the good write-up