Investing

What's Next for Bill Ackman?

Austin Smith

Published: June 11, 2024 9:45 am

There is a discussion about whether Ackman’s move to take Pershing public is partly a publicity stunt. It is noted that media-savvy figures like Ackman, who is 58 and well-suited for a CEO role, might benefit from increased public exposure. The conversation highlights how other hedge fund managers, such as Druckenmiller, might not follow this path. Ackman’s potential transition to a “friendly investor” could attract companies seeking his investment. The final decision on the IPO is expected in 2025, with preliminary steps already valuing Pershing Square at over $10 billion.

Transcript:

Is this a little bit of publicity seeking on his part?

You know, most of the people who run these hedge funds, even guys like Ray Dalio, who just, I know, retired, but they’re on CNBC like every other day.

Obviously, Buffett, who’s not in that business, is also on CNBC every day.

But is this the kind of thing that you do because you want to have more of a public profile?

Well, I guess to some extent it is.

I mean, you know, Ackman’s 58 years old, so he’s right in that sweet spot for a manager and a CEO and all of that.

And, you know, he’s very, very media savvy.

Plus, he’s a brilliant guy.

So I think he’ll be good in front of the camera and he’ll be in front of the camera a lot more.

And it is interesting to think how some of the other big hedge fund guys, you know, Druckenmiller and guys like that, would they consider this?

Probably not.

But I think at his age, Ackman is going to take a swing and I think it’ll be highly successful.

If he becomes considered friendly, friendly capital, friendly investor, there are going to be a lot of people who want him to invest in their companies instead of they get nervous when they hear about it.

They’re going to want to say to themselves, if he’s in, that means Wall Street is going to say he must be smart. Why is he in?

Yeah.

And you can bet that they’ll be beating a path to his door to present their company and to his other portfolio managers to say, hey, here’s what we got. Would you like to be in?

And yeah, I think that’s very possible.

So let’s do this.

If this deal gets done and we’re a few weeks post it being finished, let’s you and I get back on and see what the market’s reaction is.

Once you can get on board and be a public shareholder, what’s the reaction of that among shareholders?

And does this end up being ultimately a benefit for him or does he end up maybe regretting it?

I don’t think the IPO is slated until 2025.

He has plenty of preliminary work to do, but he did sell 10% of it already, and it valued Pershing Square at over $10 billion.

So yeah, it’ll be interesting, and we’re going to have to keep a close eye on how this shakes out.