Here's an update from mid-day Monday on the Pershing Square closed end fund and management company situation.
Using the math from Friday's blog post, the combo is worth $4850.40 for someone who put $5000 into the share offering. Gemini found that the sales charge was $1.25/share ($125 on the $5000 number we're working with). Both closed a little higher from when I took the screenshot and the math at the close was $4935.20.
Barron's had more on PSUS and closed end funds in general if you're interested.
For all the coverage, what's the Seinfeld quote...I'm repulsed but I can't look away, I am not seeing anyone talk about the sales charge and the no free lunch aspect. Bill Ackman was on Bloomberg and he said something about the fund still being all cash and thinking it is odd that anyone paid $50 for a cash portfolio and then immediately sold it at a huge discount. Part of his explanation was that they favored retail investors, retail investors usually don't expect to get their full ask of shares but this time they did and they had to sell to get down to what they really want.
I am skeptical about all of it.
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