Pershing Square Capital Management LP funds' outperformed the
major market indexes in the first quarter, according to founder and
chief executive William Ackman's letter to investors.
Pershing reported the funds saw gross returns between 2.5% and
4.1%, while growth net of all fees was 2.1% to 3.8%.
Major indexes posted losses of 2.8% to 12.4%, including dividend
reinvestment, for the first three months of the year. The smallest
loss was at the Nasdaq Composite Index, while the largest loss was
seen at Dow Jones Industrial Average.
In the group's letter to investors dated Monday, Pershing said
that while it lost its proxy battle with Target Corp. (TGT) last
month, it "achieved many of the objectives" identified before the
battle, including catalyzing Target to exit the credit and funding
risk associated with its credit-card operations and improving the
company's governance.
Pershing said that it expects new Securities and Exchange
Commission-mandated rules to reduce the cost of a proxy contest and
said if the changes were improved, it would put Pershing and others
in a position to "more easily replaced directors at Target or other
companies."
Ackman also touted the changes and investments made to
management at Borders Group Inc. (BGP) and bankrupt General Growth
Properties. Inc. (GGWPQ). Ackman was appointed to General Growth's
board on Friday, the first board he has joined since the formation
of Pershing.
-By John Kell, Dow Jones Newswires; 201-938-5285;
john.kell@dowjones.com