Ackman's Fund Lost a Quarter of Its Value as He Pursued Universal Music Deal

Pershing Square Holdings, the publicly traded fund that offers retail investors access to Bill Ackman's strategies, posted a negative 26.0% NAV return in the first half of 2022—the same period his firm pursued an unsolicited takeover of Universal Music Group. The fund had delivered 26.9% returns in 2021. The sharp reversal illustrates the risks concentrated activist bets carry, especially when capital is deployed into contested acquisitions during volatile markets.