Pershing Square Capital Management
An investment-management firm founded by Bill Ackman that pursues concentrated, research-driven and often activist positions in public companies.
Last updated October 7, 2026
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Overview
Pershing Square Capital Management is a New York-based investment-management firm established in 2004 by Bill Ackman. It is best known for a concentrated activist-investing approach: rather than holding a broad market portfolio, the firm typically commits substantial capital to a relatively small number of companies and seeks to influence their strategy, capital allocation, governance, operating performance or corporate structure. Its public-market work has focused largely on high-quality, cash-generative businesses with recognizable brands, durable competitive positions and opportunities for operational or strategic improvement. The firm developed out of Ackman's earlier investment activities, including the Gotham Partners investment partnership, and became one of the most visible activist investors of the 2000s and 2010s. Its campaigns and positions have covered real estate, transportation, restaurants, consumer products, financial services, hospitality and other sectors. Pershing Square has at various times invested in or publicly engaged with companies including Canadian Pacific Railway, General Growth Properties, Target, J.C. Penney, Valeant Pharmaceuticals, Allergan, Herbalife, Chipotle Mexican Grill, Hilton Worldwide, Starbucks, Lowe's and Universal Music Group. These investments have varied considerably in structure and outcome, and not every position represented a formal proxy contest or board-control campaign. The firm generally combines fundamental research with public communication. Its activist method may involve private discussions with management, public letters, presentations, shareholder proposals, board nominations, support for strategic transactions or criticism of a company's governance and operating choices. Ackman's public profile has made Pershing Square unusually prominent among hedge funds, while also exposing its campaigns to substantial scrutiny and reputational risk. The firm's highly public short position in Herbalife and its involvement with Valeant became particularly controversial and were among the most closely followed episodes in its history. Pershing Square's investment platform has included private funds and the affiliated closed-end investment company Pershing Square Holdings, Ltd., whose shares trade publicly in Europe. Pershing Square Holdings is a separate listed vehicle rather than a stock ticker for Pershing Square Capital Management itself. The manager remains privately held and is associated closely with Ackman, who has served as its chief executive and portfolio manager. Its present identity is that of a specialized, concentrated alternative-asset manager whose brand is built around activist engagement, long-term ownership and a small number of high-conviction investments.
History
Pershing Square Capital Management was founded in 2004 by Bill Ackman after his earlier experience as an activist investor and manager of Gotham Partners. The new firm adopted a more concentrated and public-facing investment model. Its central idea was that a manager could create value by owning significant positions in a limited number of businesses and engaging directly with boards and management rather than relying solely on passive ownership. During its early years, Pershing Square became associated with campaigns involving companies such as Wendy's/Arby's, Target and General Growth Properties. The firm often examined capital structure, real-estate value, operating efficiency and governance. Its investment in General Growth Properties became especially important during the financial crisis, when the shopping-center owner faced severe financial pressure. Pershing Square supported a restructuring that preserved the value of the operating business and helped position the company for a later emergence from bankruptcy-related distress. The firm gained a major activist-investing success through Canadian Pacific Railway. Pershing Square accumulated a large stake, criticized the railroad's performance and governance, and supported the appointment of Hunter Harrison. The campaign became a prominent example of activist ownership linked to operational change and improved investor expectations. Pershing Square also made a high-profile investment in J.C. Penney, where it supported a turnaround strategy and leadership changes. That investment performed poorly, demonstrating the substantial risks of concentrated activist ownership when a proposed business transformation fails to gain traction. In 2012, Ackman publicly attacked Herbalife and disclosed a large short position. He alleged that the multilevel-marketing company was a pyramid scheme and presented the thesis in public forums. Herbalife strongly disputed the allegations. The episode generated an unusually personal and prolonged confrontation between an activist short seller and a company, with other investors taking opposing positions. In 2016, the Federal Trade Commission reached a settlement with Herbalife requiring business changes and monetary relief, but the settlement did not simply validate every element of Ackman's thesis. Pershing Square ultimately exited the position after substantial losses. Pershing Square's 2014 campaign involving Allergan and Valeant further shaped its reputation. The firm built a major position in Allergan and supported Valeant's proposed acquisition, while Allergan resisted the approach. The campaign ended when Actavis agreed to acquire Allergan. Around the same period, Pershing Square's affiliate Pershing Square Holdings became publicly listed in Europe. This created a listed access point for a strategy still managed by a private investment firm. The firm later held or disclosed positions in companies including Chipotle Mexican Grill, Hilton Worldwide, Starbucks, Lowe's and Universal Music Group. Its Chipotle investment involved engagement over operating performance, customer experience and management, and the firm supported leadership changes before reducing its position. Its portfolio has continued to be relatively concentrated, with results often driven by a small number of large holdings rather than a diversified collection of small bets. Pershing Square's brand remains closely linked to Ackman's public communication style and to the broader debate over activist investing. The firm has promoted long-term ownership, high-conviction research and active engagement, while critics have questioned the effects of concentrated campaigns, public pressure and short-selling publicity. In the 2020s, Pershing Square continued to manage private funds and Pershing Square Holdings while exploring structures that could make its investment approach available to a wider range of investors. The management company itself remains private and active.
- 2024
U.S. closed-end fund initiative
[1]Pershing Square announces a plan to pursue a U.S.-listed closed-end fund, intended to broaden access to its concentrated strategy.
- 2021
Universal Music Group investment
[3]Pershing Square participates in an investment connected with Universal Music Group before the music company becomes publicly traded.
- 2017
Pershing Square exits Herbalife
[1]Pershing Square closes its Herbalife short position after the campaign produces a substantial loss for the firm.
- 2014
Pershing Square Holdings becomes publicly listed
[3]The affiliated investment vehicle Pershing Square Holdings begins trading publicly in Europe.
- 2014
Allergan and Valeant campaign concludes
[6]Actavis agrees to acquire Allergan, ending the contested Valeant approach supported by Pershing Square.
- 2012
Herbalife short position is announced
[4]Ackman publicly presents Pershing Square's short thesis against Herbalife, initiating a highly visible dispute with the company and opposing investors.
- 2011
Canadian Pacific activist campaign
[5]Pershing Square campaigns for changes at Canadian Pacific Railway and supports Hunter Harrison as chief executive.
- 2009
General Growth Properties restructures
[8]Pershing Square supports the restructuring of General Growth Properties during the financial crisis and remains involved as the real-estate company reorganizes.
- 2004
Pershing Square is founded
[7]Bill Ackman establishes Pershing Square Capital Management as a concentrated activist investment manager.
Products and positioning
A high-conviction, activist-oriented alternative investment manager focused on concentrated ownership of large, often brand-led public companies.
Hedge funds · 2004
Pershing Square private investment funds
Privately offered investment funds managed by Pershing Square Capital Management. The strategy is generally concentrated and fundamental, with the manager taking sizable positions in selected public companies and seeking to influence corporate decisions when it believes engagement can improve long-term value.
Listed closed-end investment company · 2014
Pershing Square Holdings
An affiliated publicly traded investment vehicle managed by Pershing Square. It gives public-market investors exposure to a concentrated portfolio and the firm's activist-oriented investment process, while remaining legally distinct from the private management company.
Controversies
2015
Valeant investment controversy
Pershing Square's large investment in Valeant Pharmaceuticals drew criticism as the company faced questions concerning pricing, accounting, distribution relationships and governance. The investment subsequently produced severe losses and became a prominent example of the risks of concentrated activist investing.
2012
Herbalife pyramid-scheme allegations
Pershing Square's public allegation that Herbalife was a pyramid scheme became a major controversy because Ackman had a substantial short position and promoted the thesis publicly. Herbalife denied the allegations. A later Federal Trade Commission settlement required changes to Herbalife's business practices, but did not constitute a blanket confirmation of every claim made by Pershing Square.
Marketing campaigns
- 2018Chipotle engagement
United States
Pershing Square became a major Chipotle shareholder and engaged with the restaurant company on leadership, operations, brand performance and customer experience.
Outcome. Brian Niccol became Chipotle's chief executive, and Pershing Square later reduced its investment after the company's turnaround progressed.
- 2014Allergan and Valeant
United States · Canada
Pershing Square acquired a large Allergan stake and supported Valeant Pharmaceuticals' proposed acquisition of Allergan, while Allergan resisted the transaction.
Outcome. Actavis agreed to acquire Allergan, ending the Valeant bid and Pershing Square's campaign.
- 2012Herbalife short campaign
United States · International
Pershing Square publicly alleged that Herbalife was an illegal pyramid scheme and disclosed a large short position. Herbalife rejected the allegations, producing a prolonged public dispute with the company and other investors.
Outcome. The Federal Trade Commission later reached a settlement requiring Herbalife to change aspects of its business and provide monetary relief. Pershing Square ultimately exited its short position at a substantial loss.
- 2011Canadian Pacific Railway
Canada · United States
Pershing Square criticized Canadian Pacific's performance and governance, accumulated a major position and sought board representation while advocating the appointment of experienced railroad executive Hunter Harrison.
Outcome. The campaign resulted in significant board and management changes, including Harrison becoming chief executive.
- 2010General Growth Properties restructuring
United States
Pershing Square supported General Growth Properties during a highly leveraged restructuring, arguing that the company's shopping-center assets could retain significant value if its financing and corporate structure were reorganized.
Outcome. General Growth Properties emerged from restructuring as a reorganized public real-estate company.
- 2005Wendy's/Arby's engagement
United States
Pershing Square invested in Wendy's and advocated strategic changes connected with the company's restaurant operations and asset value. The engagement preceded Wendy's separation of its Tim Hortons business and later developments involving the Arby's combination.
Outcome. The investment became an early example of Pershing Square's activist approach, although the corporate structure and restaurant assets continued to evolve after the campaign.
Brand decisions
2024
Pursue a U.S.-listed closed-end fundProduct launchBackground
Pershing Square sought to broaden access to its concentrated investment approach beyond private-fund investors and its European listed vehicle.
Action taken
The firm announced plans for a U.S.-listed closed-end fund, subject to the relevant offering and regulatory process.
Aftermath
The initiative represented a potential expansion of Pershing Square's distribution model; final implementation details require confirmation from subsequent filings.
2017
Exit Herbalife short positionStrategyBackground
Herbalife's share price and business performance had moved against the original short thesis, creating significant pressure on the concentrated position.
Action taken
Pershing Square closed its Herbalife short position.
Aftermath
The exit was widely reported as a major loss and became an important qualification to the firm's activist-short-selling record.
2014
Support Valeant's proposed acquisition of AllerganM&ABackground
Pershing Square held a significant Allergan position and supported Valeant's proposal as a way to realize value and alter the company's ownership structure.
Action taken
The firm publicly supported the bid and challenged Allergan's resistance to the transaction.
Aftermath
Actavis agreed to acquire Allergan, and the Valeant proposal was abandoned.
- Allergan — Allergan opposed Valeant's proposal and pursued alternatives.
2012
Publicly disclose the Herbalife short thesisStrategyBackground
Pershing Square believed Herbalife's sales structure and distributor economics were inconsistent with a legitimate direct-selling model.
Action taken
Bill Ackman publicly presented the allegations and disclosed that Pershing Square was short Herbalife shares.
Aftermath
The disclosure triggered a prolonged public conflict, regulatory attention and substantial losses for Pershing Square before the position was closed.
- Herbalife — Herbalife rejected Pershing Square's allegations and defended its business model.
2011
Pursue operational change at Canadian PacificStrategyBackground
Pershing Square argued that Canadian Pacific's operating performance and governance could be improved through stronger railroad leadership and more focused oversight.
Action taken
The firm accumulated a major position, sought board influence and supported Hunter Harrison as chief executive.
Aftermath
The campaign led to board and management changes and became one of Pershing Square's most cited activist successes.
Recent events
- 2024
Pershing Square launches a U.S. closed-end fund initiative[1]
Product launch
Pershing Square announced plans for a U.S.-listed closed-end fund intended to provide broader access to its concentrated investment strategy, subject to the applicable offering and regulatory process.
- 2021
Pershing Square discloses investment in Universal Music Group[3]
M&A
Pershing Square participated in a transaction involving Universal Music Group before the music company became publicly traded, expanding the firm's exposure beyond its traditional activist public-equity profile.
- 2014
Pershing Square backs Allergan campaign against Valeant bid[6]
Campaign · M&A
Pershing Square acquired a major Allergan position and supported Valeant Pharmaceuticals' attempted acquisition of Allergan. The campaign included public pressure on Allergan and later ended after Actavis agreed to acquire Allergan.
- 2014
Pershing Square Holdings lists shares in Europe[3]
Other
Pershing Square Holdings, an affiliated closed-end investment company, became publicly traded in Europe, giving investors access to a listed vehicle managed by Pershing Square.
- 2011
Pershing Square takes an activist position in Canadian Pacific Railway[5]
Campaign · Leadership change
Pershing Square accumulated a substantial position in Canadian Pacific and supported the appointment of Hunter Harrison as chief executive, making the investment one of the firm's major activist campaigns.
- 2004
Pershing Square establishes its investment-management platform[7]
Other
Bill Ackman founded Pershing Square Capital Management as a focused investment-management firm pursuing activist and concentrated public-equity strategies.
Sources10 sources
- 1Pershing Square Capital Management official websitepersq.com
- 2Pershing Square team informationpersq.com
- 3Pershing Square Holdings official websitepershingsquareholdings.com
- 4Federal Trade Commission Herbalife settlement announcementftc.gov
- 5SEC filing concerning Canadian Pacific ownership and governancesec.gov
- 6SEC filing concerning Allergan transaction matterssec.gov
- 7Pershing Square is foundedpersq.com
- 8General Growth Properties restructuressec.gov
- 9Chipotle engagementir.chipotle.com
- 10Valeant investment controversysec.gov
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