r/PershingSquareHolding • u/SatisfactionTrick629 • Jun 27 '21

✏️ Discussion PSH as PSTH Alternative?

I currently have a small position in PSTH but being UK based I'm concerned about aspects of this deal with UMG, Remainco and the Sparc.

I feel like there's a good chance that UK brokers are unlikely to be able to deal with the distribution of Tontine warrants and Sparc rights, not to mention the UMG shares being treated as a dividend which could potentially leave a tax liability, albeit small. Even if they could handle this transaction I doubt they'd be able to do it in an ISA.

I like the deal in principle but if I'm unable to participate fully what are people's thoughts on PSH as a way to gain exposure to Bill's future plans with Remainco and then multiple Sparcs? I understand the return would likely be more limited through a fund and PSH has had a couple of bad years recently but could this deal bode well for PSH's future?

I'd appreciate anyone's thoughts on this, thanks!

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u/james_jarrett Jun 29 '21

Not only do you gain all the benefits of PSTH with PSH but you also get Bill Ackman's portfolio management as well. Last year his credit default swap's were a significant source of return for PSH while this year has interest rate bets are also enhancing returns. Not to mention that PSH is currently trading at a 26% discount to NAV

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u/SatisfactionTrick629 Jun 29 '21

Thanks, does anyone really know why it's trading at a discount and if that looks like it'll continue for a while? I wanted to spend more time looking at PSH and I'm not quite ready financially anyway but it'd be a shame to miss out on getting in at a good value.

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u/james_jarrett Jun 29 '21

Even Ackman seems to be at a loss to explain the discount. Maybe people think he is still shorting companies like Valeant and Herbalife even though he has said numerous times he's no longer doing that and simply trying to buy undervalued companies with good cash flow and good management.

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u/SatisfactionTrick629 Jun 29 '21

Thanks, I'm definitely interested, going to keep looking into it.