Bill Ackman and Ryan Israel · Pershing Square Capital Management
Investment Manager’s Report
Pershing Square USA's first letter to shareholders, after its 2026 IPO
Covers H1 2026Published 21 Aug 2026Available at SEC.gov, link checked 8 Nov 2026Investor letter · Investment
The view as filed on 21 Aug 2026, not a statement of what the author thinks today.
What to notice
- 1
The managers expect every holding to grow earnings per share by 15% or more a year over the next three to five years, and about half of them by 20% or more.
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“When you are putting capital to work, it is hugely beneficial if the securities you are acquiring are declining in price rather than rising.”
Why read it
A newly listed fund's managers setting out, with worked arithmetic, how earnings growth and changes in the price-earnings multiple drive a stock's return, and why they buy fast-growing businesses below value.
About this letter
Bill Ackman and Ryan Israel, who sign as chief executive officer and chief investment officer, wrote this letter, the Investment Manager's Report that opens the first semi-annual report of Pershing Square USA, a closed-end fund listed on the New York Stock Exchange. The report covers the period from the fund's start of operations on 29 April 2026 to 30 June 2026 and was filed with the SEC on form N-CSRS on 21 August 2026.
The fund raised $5bn in its IPO and, the managers write, has deployed more than 95% of its capital in 14 investments: eight companies already held by other Pershing Square funds and six new ones, Visa, Mastercard, Netflix, S&P Global, Intercontinental Exchange and Alcon. Its net asset value fell 8.1% to the end of June against a 5.3% return for the S&P 500. Most of the letter sets out the strategy, with earnings growth and the price-earnings multiple as the two drivers of return and a worked example of how they interact. It closes on the fund's discount to net asset value, which the managers call their biggest challenge since the IPO.
Companies
- Pershing Square USA PSUS
- Visa
- Mastercard
- Netflix
- S&P Global
- Intercontinental Exchange
- Alcon
- Microsoft
- Amazon
- Meta
- Uber
- Brookfield
- Restaurant Brands International
Themes
- investing philosophy
- valuation
- growth
- long term ownership
- valuation discount
L3VLUP does not host this document. It belongs to Pershing Square Capital Management and is a public SEC filing; the notes above are L3VLUP’s reading of it.
The same argument, elsewhere
- Source Capital's 2025 letter to shareholders, on Microsoft and low credit spreads · Source Capital Portfolio Managers, FPA
- Giverny Capital's 2025 annual letter, on a year of underperformance · François Rochon, Giverny Capital
- Netflix's third-quarter 2011 letter to shareholders · Reed Hastings and David Wells, Netflix
- Hayden Capital's Q2 2026 letter, on the "SaaS-pocalypse" and returns on reinvestment · Fred Liu, Hayden Capital
Holdings named in this letter
Pershing Square Capital Management LP’s reported 13F position in each company the letter names, in the quarter ending on or before the letter and the quarter after. Shown because the letter names the company. A letter is commentary; it is not a record of why a position changed.
PSUS Pershing Square USA · The writer’s own company
The 13F Explorer has no record for PSUS, so no position is stated.
Everything Pershing Square Capital Management LP reports (13F) · Every letter beside its positions