Unlocking Value

Bill Ackman, one of the most feared corporate raiders, has just shown us how NOT to run a closed-end fund.

In Feb 2024, Mr. Ackman announced an ambitious plan of raising US$ 25 billion for Pershing Square USA (PS USA), his new closed-end fund.  That would make PS USA one of the largest closed-end funds in the world.

Shockingly, PS USA does not have a discount management policy:  it does not commit to buying back shares when share price trades at a discount to net asset value.  It does not even guide the market a target level of discount.  In a letter to investors, Mr. Ackman would like his investors to make a “significant leap of faith” that PS USA will not trade at a discount.

Instead of making a leap of faith, investors leapt away.  Mr. Ackman first cut his fundraising target by 90%, and then aborted the IPO altogether.

Mr. Ackman’s track record doesn’t help, either.  His other closed end fund, Pershing Square holdings, has consistently traded at more than 20% discount to NAV in the past decade.  Unsurprisingly, that invited Elliott Management’s attack in 2017.

China Merchants China Direct Investments (CMCDI, 133 HK), which has no discount management program, should learn from Mr. Ackman’s mistake. 

We, Argyle Street Management, urge CMCDI to buy back shares, until the discount narrows to 30% and eventually 20%.

Read our full proposal to learn how a discount management program works.

Chat with us on WeChat or Whatsapp:

💬 WeChat ID: ASM_Argyle

💬 WhatsApp ID: +852 6317 6371

🖥️ UnlockValueChinaMerchants.com

📧 ChinaMerchants@asmhk.com

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比尔·阿克曼是世界上最令人恐惧的企业狙击手之一。他刚向我们展示了一个完美的封闭式基金反面教材。

2024 年 2 月，阿克曼先生宣布了一项雄心勃勃的计划。他计划于美国上市旗下新的封闭式基金 Pershing Square USA (PS USA) ，并预期募资 250 亿美元。这将使 PS USA 成为世界上最大的封闭式基金之一。

令人震惊的是，PS USA 并没有折价管理计划(discount management program)：当股价低于净资产值时，PS  USA并没有承诺回购股票。它甚至没有提供市场参与者一个折价的目标。在致投资者的一封信中，阿克曼先生希望他的投资者作出“重大信念的飞跃”，相信 PS USA 不会出现折价。

然而，投资者没有作出信念的飞跃，而是信念的飞逝。阿克曼先生首先将他募资的目标削减了 90%，然后直接取消其上市计划。

阿克曼先生过往的业绩更令募资雪上加霜。他的另一只封闭式基金 Pershing Square Holdings 在过去十年中一直存在 20% 以上的折价。在 2017 年更是引发了Elliott Management 的攻击。

招商局中国基金 (CMCDI, 133 HK) 应该从阿克曼先生的错误中汲取教训。

我们， Argyle Street Management ，敦促 CMCDI 回购股票直至折价少于30% ，并最终缩小至 20%。

请阅读我们的完整提案以了解折价管理计划的运作原理。

欢迎与我们联系：

💬 微信: ASM_Argyle

💬 WhatsApp ID: +852 6317 6371

🖥️ UnlockValueChinaMerchants.com

📧 ChinaMerchants@asmhk.com