James Elbaor, founder and CIO of Marlton Capital, discusses his investment thesis for Pershing Square Holdings (PSH). Please follow the podcast on Spotify, iTunes, or most other podcast players, as well as on
Does Ackman really benefit from conversion to a C-corp? As a 10% owner/manager, he is not subject to PFIC tax restrictions. Additionally, Pershing continually buys back shares and pays out cash, concentrating his holdings. So he personally benefits enormously both from the management/performance fees AND from the discount. When he choses to retire or at his demise, Pershing will liquidate, closing the discount, and maximizing benefits to Bill and his family/estate. If as an investor you are fully committed to an indefinite hold, you would benefit from the discount as well...but closure may be decades away.
Does Ackman really benefit from conversion to a C-corp? As a 10% owner/manager, he is not subject to PFIC tax restrictions. Additionally, Pershing continually buys back shares and pays out cash, concentrating his holdings. So he personally benefits enormously both from the management/performance fees AND from the discount. When he choses to retire or at his demise, Pershing will liquidate, closing the discount, and maximizing benefits to Bill and his family/estate. If as an investor you are fully committed to an indefinite hold, you would benefit from the discount as well...but closure may be decades away.
anybody interested in universal music? at the lows now....
PIFIC - is a key reason for the discount - also worth flagging to potential investors they will end up in tax return hell