Money Stuff: The Podcast Bag of Snakes
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May 1, 2026 They debate the hidden costs and emotional pull of buying a house. They dissect Pershing Square USA’s troubled public listing and closed‑end fund dynamics. They explore why few hedge managers go public and why multi‑strategy startups struggle. They recount the Avis short squeeze and the oddities of Section 16 short‑swing profit rules.
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Closed End Fund Physics Defeated Pershing Square IPO
- Pershing Square USA launched as a $5 billion closed-end fund but traded at a meaningful discount to NAV on debut.
- Bill Ackman tried to engineer demand by bundling free management-company shares but physics of closed-end funds still applied.
Grand Vision Shrunk Into A Discounted Reality
- Ackman sought permanent-capital structure like Berkshire Hathaway but the market treated PSUS like other closed-end funds and applied discounts.
- The IPO ultimately shrank from the grand $25 billion vision to a $5 billion reality that traded at a discount.
Expect Better Terms For IPO Anchor Investors
- When underwriting IPO anchor allocations, expect anchors to get better economics for committing capital pre-IPO.
- Anchors in Pershing's deal received 50% more management-company shares, and early investors fared better than IPO buyers.