Ackman Blames Retail Investors for Fund Drop
Bill Ackman blamed retail investors for the initial 18% drop in his new fund's stock, which later rebounded.
Atlas Newsdesk ·
Ackman Attributes Fund's Initial Decline to Retail Investors Billionaire investor Bill Ackman, founder and CEO of Pershing Square Inc., attributed the approximately 18% decline in his newly listed closed-end fund, Pershing Square USA (PSUS.N), on its debut day to retail investors. The fund, which began trading on the New York Stock Exchange (NYSE) on April 29, 2026, saw its shares drop from an initial public offering (IPO) price of $50 to $40.90 on Wednesday. Ackman made these remarks on April 30, 2026, during a call with foreign journalists.
Ackman suggested that retail investors overcommitted to the IPO, then lacked the capital to cover their purchases, leading to forced selling. Despite this initial drop, Pershing Square USA shares rebounded over 6% on Thursday, trading at $43.54, though still below the IPO price. Ackman and his employees collectively invested approximately $500 million in the new fund.
The IPO raised $5 billion, increasing Ackman's overall assets by 25%. The fund's investments are expected to mirror those of Pershing Square Holdings (PSHP.L), a London-listed closed-end fund, which includes major holdings such as Alphabet (GOOGL.O) and Meta Platforms (META.O). Over the past eight years, Ackman stated his closed-end fund has achieved an average annual return of 25%.