Billionaire investor Bill Ackman faced an unexpected setback after his newly launched U.S.-listed investment vehicle, Pershing Square USA Ltd. (PSUS), opened weakly on the stock market.
Shares of the closed-end fund closed at $40.90 on April 29, marking an 18% decline from the initial public offering price of $50. The disappointing debut surprised many investors, especially after earlier market expectations placed the opening range between $42.50 and $47.50.
However, shares later recovered slightly and traded above $42.71, though they still remained below the IPO price.
The weak launch quickly became one of the most talked-about Wall Street stories, as Ackman is widely known for bold investment bets and his long-term ambition to build a company similar to Warren Buffett’s Berkshire Hathaway.
Pershing Square USA operates as a closed-end investment company managed by Pershing Square Capital Management, which belongs to Pershing Square Inc.
To increase investor demand, Ackman added an unusual incentive. Investors who bought five PSUS shares received one free share of Pershing Square Inc. Despite that move, market enthusiasm remained soft.
Ackman later blamed retail investor behavior for part of the weak start.
“Retail investors don’t know how to invest in IPOs,” he said during a call after trading began.
Even so, Ackman stressed that the company aims to attract everyday investors, not just wealthy institutions. He also said the new structure gives people with as little as $50 a chance to become long-term shareholders.
That retail-focused message could still resonate over time, especially as more young investors seek access to elite investment strategies once reserved for hedge fund clients.
Ackman’s investment portfolio remains highly concentrated, reflecting a strategy similar to Warren Buffett’s long-term approach. Instead of frequent trading, he often holds positions for years.
As of the latest filings, Pershing Square Capital Management’s largest investments include:
- Brookfield Corp. – 18.15%
- Uber Technologies – 15.90%
- Amazon – 14.28%
- Alphabet – 12.46%
- Meta Platforms – 11.37%
- Restaurant Brands International – 10.05%
- Howard Hughes Holdings – 9.69%
- Hilton Worldwide Holdings – 5.60%
Smaller holdings include Seaport Entertainment Group and Hertz Global Holdings.
During the fourth quarter of 2025, Ackman increased positions in Meta Platforms and Amazon. At the same time, he reduced his stake in Alphabet and fully exited Chipotle Mexican Grill, one of his longtime investments.
Although the IPO began poorly, investors will now watch whether Pershing Square USA can recover momentum in the coming weeks.
For now, the market has delivered a clear early message: even billionaire-backed launches must still earn investor confidence.
