Contrarian Corpus
activist full deck follow up
2024-02-08 · 59 pages

Pershing Square Holdings PSH

The three reasons

  1. 1

    PSH delivered 26.7% NAV / 36.0% TSR in 2023; 31.2% 5-yr CAGR

  2. 2

    Amended FOA eliminates $36mm offset and could cut PSH fees from 16.0% to 6.5%

  3. 3

    Concentrated quality portfolio (UMG, GOOG, CMG, QSR, HLT, HHH, CPKC) drove 29% net in 2023

KPIs cited

2023 NAV return
26.7% net (vs S&P 500 26.3%)
2023 total shareholder return
36.0% including dividend reinvestment
5-year compound annual NAV return
31.2% vs S&P 500 15.7% (1,550 bps outperformance)
10-year compound NAV return
13.6% vs S&P 500 12.0%
Since-firm-inception cumulative return (PSLP/PSH)
1,979% vs S&P 500 535% (1/1/2004-12/31/2023)
Discount to NAV
Narrowed from 33.2% (start 2023) to 28.7% year-end to 27.0% as of 2/6/2024
Total Debt to Total Capital
16.3% as of 12/31/2023; debt covered 6x by total assets
Weighted-average cost of debt
3.08%; 8-year weighted-average maturity
Share buybacks since 2017
64mm shares (26% of initial S/O) at avg $20, avg 29% discount to NAV
Total firm AUM
$18.2bn ($15.8bn equity) as of 2/6/2024; insider capital 28%
FOA Offset Amount eliminated
$36mm residual balance wiped out under Feb 7, 2024 amendment
Illustrative fee-reduction impact
$10bn mgmt-fee-only fund x 2% x 20% = $40mm PSH performance-fee reduction
UMG total shareholder return since announcement
58% (Net 40%) vs 18% S&P 500
GOOG entry valuation
15x earnings at March 2023 entry; +56% in 2023
CMG same-store sales 2023
+8% (42% above 2019); restaurant margin 26.2% (+230bps)

Pattern membership

Where this document fits across the library's 12 rhetorical / structural patterns. Orange cells are present in this deck; neutral cells are not.

Composition what's on the 59 slides

Visual + textual elements counted across every slide in this deck. Hover a box for what that element is; click to see every slide in the corpus that uses it.

Slide gallery ·

All 59
No slide inventory yet

Pass-2 extraction may still be in progress for this deck.

Notes

Fund-level annual investor presentation for Pershing Square Holdings (the publicly-listed closed-end fund), not a single-target activist campaign — hence SCQA / thesis_one_liner / thesis_summary / closing_ask set to null per extraction guidance. Classified follow_up. Covers 2023 performance, PSH board governance (Rupert Morley to replace Anne Farlow as Chair at May 2024 AGM), the Feb 7, 2024 Fee Offset Arrangement amendment (eliminates $36mm offset balance; adds 20% of PSCM mgmt fees on new funds as PSH fee credit), strategies to narrow the NAV discount, U.S. listing decision (examined, deemed not viable), and one-page reviews of each portfolio holding (UMG, GOOG, CMG, QSR, HLT, HHH, CPKC, FNMA/FMCC) plus the Lowe's exit (~175% TSR / $1.8bn profit). Bill Ackman remains CEO & PM. Each holding one-pager uses a reusable 3-block colored-band template worth studying. Annotated share-price charts (p38 UMG, p40 GOOG, p42 CMG, p48 HHH, p55 LOW) are the strongest visual element.