Bloomberg
William Ackman, the famed shareholder activist, is losing investors at a rapid pace and facing a future that would no longer include managing a private hedge fund.
After three years of subpar performance, most investors in his Pershing Square Capital Management LP have asked for their money back, with about two-thirds of the cash that could be withdrawn at the end of the year being pulled, according to people familiar with the matter. Longtime backer Blackstone Group LP BX, +0.58% has been taking cash out, and JPMorgan Chase & Co.’s JPM, +1.52% asset-management group told clients it could no longer recommend the fund, the people said.
While a sharp reversal in performance could stem the tide, the fund declined again in the first quarter, trimming its total assets 12% to $8.2 billion. It isn’t clear what redemptions are this year.
Ackman is paring staff, stepping back personally from investor relations and isn’t seeking to replace departing money. That sets the stage for a future in which the firm will largely consist of a publicly traded entity, Pershing Square Holdings Ltd., which currently has about $3.9 billion in assets. Add in Ackman’s own wealth and that of his partners, and it would still have some $5 billion to manage.
An expanded version of this report appears on WSJ.com
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