Pershing Square Holdings, the $US7.4 billion publicly traded vehicle led by Bill Ackman, has erased all of its gains in a matter of weeks and is now down for the year.
Ackman said in an investor update: “However there has been significant volatility in the investment markets over the past few weeks, largely driven by the decline of the Chinese stock markets, and the fear that slowing growth in China will have repercussions for businesses around the world.
“At the date of this report, the year to date investment performance has been erased, and the Company is at a loss position for the year.”
Pershing Square Holdings had been up 10.1% through the end of July, the letter said.
During the first half of the year, the fund returned 3.2% net of fees. In July, the fund gained 6.6%.
Markets have gotten have gotten clobbered in the last week. On Monday, the Volatility Index (VIX), a key measure of fear in the market, hit its highest level since 2009.
Ackman, 49, is known for typically being a long-only activist investor, taking large positions in a handful of companies.
We’ll have more in a moment.