By Nell Mackenzie<\/p>\n
LONDON, Feb 10 (Reuters) – Billionaire investor William Ackman’s Pershing Square fund reaped $2.7 billion on interest rate trades in 2022, but not enough to plug losses and the fund finished the year down almost 9%, according to an investor Evden eVE nakLiYAt<\/a> presentation seen by Reuters.<\/p>\n U.S.stock indexes<\/a> had a dismal 2022 with the S&P 500 slumping almost 20%, as the Federal Reserve battled soaring inflation with aggressive interest rate hikes that roiled markets.<\/p>\n Pershing Square Capital Management in 2022 lost 8.8% of its net asset value its worst result since 2016, while its share price fell 14.6%, the presentation dated Feb.9 showed.<\/p>\n The assets minus the liabilities in Ackman’s fund trade at a discount to its share price. The fund may consider moving its listing from Europe to the United States to remedy this, a Jefferies analyst note said on Friday.<\/p>\n “It would likely offer a very good chance of materially narrowing the discount, given the nexus for the fund and manager has always been the U.S. anyway,” said the Jefferies note.<\/p>\n “This possibility is also something that we do not feel is currently reflected in PSH’s share price,” it said.<\/p>\n The contents of the presentation were reported by Institutional Investor on Thursday.<\/p>\n Pershing Square traditionally holds a smaller number of investments.Stock positions in companies such as Lowe’s , Netflix, Chipotle Mexican Grill, Domino’s Pizza, Hilton and EVdEN evE naKliYat<\/a> Universal Music Group detracted from positive performance elsewhere, the note said.<\/p>\n A performance fee was not charged by Pershing Square Holdings in 2022, the presentation said.<\/p>\n Positions in Netflix and Domino’s Pizza were sold in order to free up capital for new opportunities, said the presentation.<\/p>\n Interest rate protection in the form of derivatives known as swaptions, a bet on volatility in rates markets, the fast food company Restaurant Brands International, evDEN eVE nAKliYat<\/a> energy hedges and share buybacks all retraced losses, the presentation said.<\/p>\n The interest rate hedges were initiated in late 2020 and early 2021.In 2022 the fund entered new positions in long-term interest rates, currencies and energy it said.<\/p>\n