Pershing Square Holdings Portfolio (multiple) PSH
The three reasons
- 1
2016 losses of -13.5% were driven overwhelmingly by Valeant; balance of portfolio performed well
- 2
Remaining holdings are high-quality businesses (MDLZ, APD, QSR, CMG) with clear operational catalysts and margin upside
- 3
Key wins in 2016: MDLZ margins +250bps, APD +400bps, CP exited at +244%, FTC injunction against Herbalife
Primary demands
- Mondelez: execute margin expansion to 17-18% by 2018 and toward best-in-class peers thereafter
- Air Products: continue Seifi Ghasemi's transformation and deploy $2.6bn from divestiture proceeds
- Chipotle: complete governance refresh and operational recovery from food-safety crisis
- Valeant: execute asset sales and operational turnaround under new CEO Joe Papa with Pershing board representation
- Herbalife (short): enforce FTC permanent injunction restructuring the US business model
- Fannie/Freddie: recapitalize and release under new administration per Mnuchin's stated priorities
KPIs cited
Pattern membership
Slide gallery ·
Notes
Fund-level annual investor update delivered at the trough of Pershing Square's historic drawdown — back-to-back negative years (-20.5% in 2015, -13.5% in 2016) driven almost entirely by Valeant. Not a single-target campaign deck; per-position updates across MDLZ (~16%), QSR (~17%), APD (~13%), HHC, CMG, two undisclosed, FNMA/FMCC, VRX, PAH, Nomad, and HLF short (~-9%). thesis_one_liner / thesis_summary / SCQA set to null per guidance for fund updates with no single thesis. Post-Valeant reframe: emphasizes operational progress at other holdings; no dedicated Valeant apology slide, just 'obtained board representation to assist turnaround'. Herbalife section most adversarial — argues FTC Complaint 'substantially agrees' with pyramid-scheme thesis. Uses Mnuchin quotes as catalyst (supporting, not contradiction). CP since-inception annotated stock chart on p.86 is the classic 'victory lap' artifact. Visual: standard Pershing Square institutional template (blue headers, colored banner boxes, clean but not craft-heavy) — 3 rather than 4.