Pershing Square Holdings PSH
Fund-level recap: PSH's 22.9% seven-year NAV CAGR, conservative leverage and PSCM stake sale set up a narrowing of the persistent ~30% discount to NAV.
Thesis
Pershing Square Holdings' 2025 annual investor presentation is a fund-level recap rather than a single-target activist thesis. Board Chair Rupert Morley and the PSCM team report 2024 NAV appreciation of 10.2% and a seven-year NAV CAGR of 22.9% — 910 bps ahead of the S&P 500 — while flagging that PSH still trades at a ~30% discount to NAV that widened 1.6% during 2024. Management details the toolkit for closing that gap: 2.5 million shares repurchased in 2024 at a 31% discount, investment-grade debt at 3.1% cost with 6.6x asset coverage, the $1.05bn 10% PSCM stake sale that funds new strategies and reduces PSH performance fees, and portfolio-company updates on Alphabet, Chipotle, Hilton, Brookfield, UMG, Nike, RBI, CPKC, Uber, and Fannie/Freddie. A secondary narrative frames S&P 500 concentration (top-10 at 39% of cap, 27x P/E) as a stock-picker's tailwind.
SCQA
PSH is a £GBP-listed FTSE 100 permanent-capital vehicle giving public investors exposure to Pershing Square's concentrated long-equity activist strategy, run by William Ackman since the 2012 inception.
Despite a 22.9% seven-year NAV CAGR and FTSE 100 inclusion, PSH's discount to NAV persists at ~30% and widened 1.6% in 2024 even as NAV compounded 10.2%.
Keep compounding NAV, repurchase stock at deep discounts, use the $1.05bn PSCM stake-sale proceeds to seed lower-fee funds, and push portfolio companies toward U.S. index inclusion.
Continued 20%+ NAV returns plus discount compression would layer a re-rating return on top of underlying compounding; a full NAV close would imply meaningful uplift from today's £GBP share price.
The three reasons
- 1
PSH compounded NAV at 22.9% annually over 7 years vs. 13.8% for the S&P 500
- 2
PSH still trades at a ~30% discount to NAV despite buybacks, FTSE 100 inclusion and strong returns
- 3
Top-10 S&P stocks at 39% of index cap and 27x P/E create a stock-picker's market outside mega-cap tech
Primary demands
- Close PSH's ~30% discount to NAV via continued strong investment performance and corporate actions
- Continue share buybacks at deep discounts to NAV
- Use PSCM stake-sale proceeds to seed new funds that reduce PSH performance fees
- Pursue U.S. index inclusion for portfolio companies (UMG, Brookfield, RBI) to attract passive demand
KPIs cited
Pattern membership
Precedents cited
- January 19, 2018 'Returning to Our Roots' investor presentation
Composition what's on the 75 slides
Slide gallery ·
Notes
Fund-level annual investor presentation for PSH (the permanent-capital vehicle), not a single-target activist thesis. Covers board governance, performance review, PSCM stake sale, organizational updates, and position-by-position commentary (UMG, GOOG, BN, QSR, CMG, NKE, CPKC, UBER, Hilton, Fannie/Freddie). The 27% stake figure reflects PSCM affiliates' ownership of PSH itself, not a target-company stake. Campaign_phase = follow_up per guidance for fund-level updates. Closest to a contrarian argument is the S&P 500 concentration narrative (p33-36) positioning PSH as a stock-picker hedge against mega-cap crowding. Author attributed to William Ackman as CEO/PM though the cover credits only 'Pershing Square Holdings'.