Bill Ackman’s net worth soars as Pershing Square shares jump

Billionaire Bill Ackman’s wealth is surging as his hedge fund continues its strong winning streak and as the Pershing Square (LON: PSH) share price soars. According to Forbes, his net worth has jumped to $4.2 billion, a remarkable recovery after it plunged to $1.1 billion in 2018.

Ackman’s net worth has jumped because of the strong performance of his hedge fund. It has already gained 1.1% this year according to its most recent NAV report. It gained by 26.7% in 2023, outperforming the S&P 500 index, which rose by 24.23%.

Before that, he lost 8.8% in 2022 as American stocks plunged but he still outperformed the S&P 500 index. In 2021, he gained by 26.9% while in 2020 he soared by over 70%. Some of his performance in 2020 was attributed to his bet that the Fed would cut rates aggressively. He invested just $27 million and made over $2 billion within a few weeks.

Pershing Square Holdings stock chart

Bill Ackman’s performance is notable because his hedge fund only invests in a handful of companies. His current portfolio includes companies like Alphabet, Chipotle Mexican Grill, Lowe’s, Hilton, Howard Hughes Corporation, Restaurant Brands and Universal Music Group. He also owns stakes in Fannie Mae and Freddie Mac. 

Ackman’s performance can also be seen in the recent trend of Pershing Square Holdings (PSH) stock price, which has surged to a record high of 3,800p in London. It has jumped by more than 250% from its lowest point in 2020, outperforming the FTSE 100 index by far.

However, the key challenge for the fund is that it has constantly traded at a discount to its Net Asset Value (NAV). Data compiled by Hargreaves Lansdown shows that it was trading at a 26.8% discount to its NAV.

Ackman has become one of the best-perming hedge fund managers in Wall Street. Notably, he has outperformed Carl Icahn, whose empire is in trouble. Carl Icahn’s Icahn Enterprises stock has retreated by 60% from its highest point in 2023.