Pershing Square Holdings, Ltd. (annual portfolio update; covers CMG, ADP, QSR, LOW, SBUX, HLT, UTX, HHC, FNMA/FMCC) PSH
The three reasons
- 1
PSH trades at 27% discount to NAV despite 13.8% net CAGR since 2004 vs 8.4% for S&P 500
- 2
Concentrated portfolio of high-quality, FCF-generative compounders outperformed S&P by 1,500bps YTD 2019
- 3
Restructured firm (74 to 38 employees) refocused on core principles and constructive activism
Primary demands
- Close PSH's ~27% discount to NAV via tender, buybacks, removal of 4.99% ownership cap, and a new quarterly dividend
- UTX: separate into three independent companies (Aerospace, Otis, Carrier)
- CMG: complete operational turnaround under new CEO Brian Niccol
- Lowe's: narrow EBIT margin gap to Home Depot under new CEO Marvin Ellison
KPIs cited
Pattern membership
Where this document fits across the library's 12 rhetorical / structural patterns.
Notable slides (9)
Notes
Annual LP update for Pershing Square Holdings (the publicly-listed closed-end fund), not a single-target activist deck. Three-part narrative: (1) close the NAV discount via capital actions + dividend, (2) prove the firm has 'returned to roots' after the 2015-2017 drawdown via headcount cut and discipline, (3) walk through each portfolio company. Peer-gap framing applied at fund level (PSH vs hedge funds; PSH vs S&P 500) and at position level (LOW vs HD; UTX vs aerospace peers). 'What we said / What we did' framing on slides 21-22 is a clean before/after device. Tone is collaborative/promotional rather than adversarial — no villain, no quote-contradiction, no fraud rhetoric. UTX breakup is treated as won (announced Nov 2018). CMG and ADP positioned as in-progress activist wins. Useful as a specimen of post-drawdown 'comeback narrative' construction by an activist fund.