Bill Ackman is a star on Wall Street and hedge fund heaven. That doesn’t make him immortal, as the founder of the financial firm Pershing Square himself knows.
There are no trams running on Wall Street. Still exists at the Pershing Square Plaza, after which Bill Ackmans hedge funds, the risk of unexpectedly having a fatal accident – for example, being run over by a van.
The star hedge fund manager has this “pie truck risk” in his most recent Letter to Investors addressed: At 56 and in excellent health, this is the deadliest threat he faces, Ackman said.
Exceptional talent from the Midwest
For this reason, too, the American, who has increased the assets under management of his hedge fund from 500 million to 18.5 billion dollars since it was founded in 2004 and who also took Pershing Square public, thought about the successor – and a first step did.
For example, Ackman holds the central position of chief investment officer (CIO) at a fund company Ryan Israel (picture below) delivered. It is now up to the 37-year-old financial expert to position the hedge fund’s billions profitably; a task for which the company founder considers him ideally suited. However, Ackman will continue to make the final decision about portfolio management in the future.
(Bild: Pershing Square)
industry in a headwind
In the investor letter, Ackman hailed the Midwestern Missouri-born Israel as a talent once in a generation. Coming from the investment bank Goldman Sachs, the new CIO has been with Pershing Square since the age of 24.
Internally, he is considered a star performer, like the industry portal «Institutional Investor» reported. At the moment, however, he too is struggling with the headwinds that are currently hitting hedge managers in the face. Ackman’s funds have lost almost 11 percent of their book value since the beginning of the year; Pershing Square’s stock is trading below its intrinsic value on the stock exchange, which is of course a thorn in the side of the founder, who is used to success.
contradiction tolerated
Young star Israel takes over from veteran Ackman at a very delicate moment. But apparently the newly appointed is bursting with self-confidence. “Ryan dares to challenge anyone,” says Ackman. “And that even applies to ‘your truly’.”