Letter to Shareholders in the 2024 Semiannual Financial Statement

Pershing Square Holdings reported modest negative performance through August 2024 despite strong underlying portfolio company results. Ackman attributed market volatility to growing index ownership and highly leveraged short-term traders using margin and derivatives, which he characterized as beneficial for active investors with permanent capital seeking quality companies. PSH amended its investment management agreement to reduce the 16% performance fee by excluding certain fund fees and waiving $36 million in unrecovered IPO costs. The firm launched Pershing Square USA (PSUS), a U.S. closed-end fund mirroring PSH's strategy, and sold a 10% stake in its management company to establish an independent board. Portfolio contributors included Alphabet (2.7% YTD), Chipotle (2.6%), and Hilton (1.6%), while Universal Music Group detracted 3.8% after missing streaming growth expectations. Ackman maintained conviction in UMG's long-term prospects despite near-term disappointment.