Key Takeaways
- • Bill Ackman's Pershing Square Capital Management ranks #19 on LCH Investments' all-time top 20 hedge fund list, making it the youngest fund on the rankings at 11 years old and Ackman the youngest manager featured at age 48.
- • Pershing Square delivered $4.5 billion in net gains for investors in 2014, bringing lifetime gains to $11.6 billion since its 2004 launch, with the fund returning approximately 35% net of fees through early December.
- • Allergan positioned as the primary driver of 2014 outperformance, with Ackman's stake generating approximately $2.6 billion in gains and contributing substantially to his estimated personal take-home of at least $1 billion for the year.
- • LCH Investments chairman Rick Sopher characterized Pershing Square's 2014 results as "outstanding," noting that gains derived from "intelligent investing in liquid big cap U.S. stocks" amid an otherwise muted year for the broader hedge fund industry, which posted $71 billion in total net gains.
Summary
Bill Ackman has been recognized as one of the world's top 20 hedge fund managers for the first time, following exceptional performance in 2014 that positioned Pershing Square Capital Management at number 19 on LCH Investments' all-time ranking of hedge funds by cumulative investor profits. The ranking, which measures total take-home gains after fees since fund inception, reflects Pershing Square's $4.5 billion in net investor gains during 2014 alone, bringing the fund's lifetime tally to $11.6 billion since its 2004 launch.
The 2014 outperformance was substantially driven by Ackman's activist position in Allergan, the Botox maker, which generated approximately $2.6 billion in gains. Pershing Square's overall return of approximately 35% net of fees through early December positioned it as a standout performer in an otherwise subdued year for the hedge fund industry, which collectively posted $71 billion in net gains—lower than the two preceding years. Rough CNBC calculations using Ackman's net worth, fund stake, and annual returns suggest he personally earned at least $1 billion in compensation for 2014.
Pershing Square's entry into the top 20 is notable for its relative youth; at 11 years old, it is the youngest fund on the list, and at 48 years old, Ackman is the youngest manager featured in the rankings. Rick Sopher, chairman of LCH Investments and head of alternative multi-management at Edmond de Rothschild, praised the results as "outstanding," attributing Pershing Square's outperformance to "gains mostly coming from intelligent investing in liquid big cap U.S. stocks," distinguishing the fund's approach amid broader industry headwinds.
The 2014 outperformance was substantially driven by Ackman's activist position in Allergan, the Botox maker, which generated approximately $2.6 billion in gains. Pershing Square's overall return of approximately 35% net of fees through early December positioned it as a standout performer in an otherwise subdued year for the hedge fund industry, which collectively posted $71 billion in net gains—lower than the two preceding years. Rough CNBC calculations using Ackman's net worth, fund stake, and annual returns suggest he personally earned at least $1 billion in compensation for 2014.
Pershing Square's entry into the top 20 is notable for its relative youth; at 11 years old, it is the youngest fund on the list, and at 48 years old, Ackman is the youngest manager featured in the rankings. Rick Sopher, chairman of LCH Investments and head of alternative multi-management at Edmond de Rothschild, praised the results as "outstanding," attributing Pershing Square's outperformance to "gains mostly coming from intelligent investing in liquid big cap U.S. stocks," distinguishing the fund's approach amid broader industry headwinds.
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