Bill Ackman is betting that individual investors will drive demand for a new closed-end fund managed by Pershing Square. The hedge fund is launching two public offerings for the fund, a move that targets retail participation.
Pershing Square is giving away shares to any investor who buys five or more shares in the fund’s initial public offering. The strategy aims to attract a broad base of individual buyers.
The fund will be structured as a closed-end fund, which issues a fixed number of shares. This differs from traditional open-end mutual funds, which can issue unlimited shares.
Ackman’s decision to court retail investors marks a shift from the firm’s usual focus on institutional clients. The approach includes a share grant meant to incentivize smaller purchases.
The dual offering structure allows investors to buy shares directly or through a separate rights offering. This gives individual investors two ways to participate in the IPO.
Pershing Square has a history of using creative tactics to generate interest in its funds. The share giveaways are designed to build a loyal base of retail shareholders.
The move comes as hedge funds increasingly seek new sources of capital amid changing market conditions. Retail investors have grown more influential in recent years.
