Shares in Bill Ackman's closed-ended fund Pershing Square dropped by more than 10 per cent during its stock market debut – but Ackman has shrugged off the fall as a sign the stock was not overpriced.
Pershing Square Holdings' shares were priced at $25 in the IPO, but plummeted as low as $22.30 during early trading on the Amsterdam stock market, where they are listed.
They recovered slightly, but were still at $23.50 at pixel time.
The veteran hedge fund manager Ackman had originally sought a $2bn fund raising for the vehicle, but ended up raising $2.73bn.
He is reporrted to have told journalists at the stock exchange: “The stock is down, which is good. If it went up, we'd have sold it too low.”
The Euronext-listed fund targets privately placed securities of public issuers and publicly traded securities of private issuers.
Current investments include Allergan, Canadian Pacific Railway, Air Products & Chemicals, The Howard Hughes Corporation, Burger King Worldwide, Platform Specialty Products Corporation and Fannie Mae and Freddie Mac.