Letter to Shareholders in the 2022 Annual Report

Citations · 6

• “In 2022, Pershing Square Holdings generated strong relative NAV performance of negative 8.8% versus negative 18.1% for our principal benchmark, the S&P 500 index.”

  p#2 · confidence 95%

• “Over the last five years, PSH has generated a compound annual rate of return of 25.1%, even better than the results of our first nearly 12 years during which time we compounded investor capital at a 21% annual rate”

  p#5 · confidence 95%

• “Our losses on equities were offset somewhat by interest rate hedges, which contributed 14.3 percentage points of positive performance in 2022...have generated approximately $5.3 billion in total hedging proceeds to date versus a cost of $446 million”

  p#16 · confidence 95%

• “There are reportedly ~$620 billion of mark-to-market losses on banks' security portfolios that are not currently reflected on bank's financial statements...we believe it can be helpful to share our views”

  p#42 · confidence 90%

• “Day One Investors have grown their equity investment at a 15.7% compounded annual rate over the last 19 years, compared with a 9.0% return had they invested in the S&P 500 during the same period.”

  p#1 · confidence 95%

• “we purchased 8.3 million shares representing 4.1% of shares outstanding at an average price of $31.94 and a discount to NAV of 33%...we have acquired 59.8 million shares or 25% of our shares outstanding at an average price of $18.80 and discount of 28%, which has added 1.2% per annum to our annual NAV returns”

  p#1 · confidence 95%