Activist investor Bill Ackman is reportedly “losing investors at a rapid pace,” potentially signaling the beginning of the end for his private hedge fund.
Most of the investors in his Pershing Square Capital Management LP have asked for their money back, after three years of sub-par performance from the hedge fund, The Wall Street Journal reports.
According to people familiar with the matter, more than two-thirds of the cash that could be withdrawn by the end of the year has been pulled from the fund, The Journal reports.
JPMorgan Chase & Co has told clients that it can no longer recommend the fund, and the fund’s longtime backer Blackstone Group LP has also been withdrawing its cash.
In light of the departing money, Ackman has reportedly been cutting staff. He’s also opted to step back from investor relations and does not have plans to replace the departing cash, suggesting that the fund will eventually fold.
Pershing Square’s total assets reportedly declined by 12%, to $8.2 billion, in the first quarter of 2018.