Would like to hear from people who have researched Pershing and/or invested themselves. I don’t have huge knowledge on close ended funds ad so would love to hear abut impacts of that as well as the current discount and what that means. I have read around them a fair bit recently but looking for other opinions to spur some thoughts. I like the fact they are focused in their investing with 10 companies, i own SBUX myself but none of the others but rate Bill Ackman.
Personally I have PSH as a top 3 holding along with $bomn and #SMT as I believe between the three will provide significant growth, yet a degree of safety with some of the worlds best managing the bulk of my cash. I will then invest in small caps which I believe to have potential but no more then 10 holdings. Ideally I’ll consolidate these as I pick my winners.
With regards to PSH I think as it trades at such a discount it’s a great opportunity. Now it’s part of the Ftse I feel the gap will close over time, I believe Bill Ackman has consolidated so this is his main investment vehicle. PSH also has good size stake in the PSTH spac which means you get to buy in at a discount… the PSTH spac should also draw more attention to PSH too.
I was discussing this with someone not long ago and I had a look at PSH earlier last year. This is my thought on PSH based on when I looked at it briefly a few weeks ago as well as mid last year, I haven´t looked into it recently:
In my view, it is a risky option if the market goes bearish for an extended period of time, particularly considering its stock investments. However I think that if the market continues to be bullish and the SPAC boom continues this is could have a lot of upside due to two reasons that you are already aware about:
The discount to NAV which I am hoping will catch up if it continues to outperform.
The potential shares and warrants of the SPAC if it manages to find a suitable merger target, as I recall that it had the option to buy a significant percentage of the total SPAC in new shares at issue price (or slightly above, not sure now) if the SPAC target lead to an increase in share price.
So, if you are very “bullish” on the overall market I think this is a good option. I can’t say I am “bullish” at the moment, but I am not necessarily “bearish” either, it´s just hard to say where the markets will go from here.
If the markets are bearish for prolonged period then any/all stocks will likely go down.
Psh you’re buying a stake in some of the best and most durable businesses IMO it’s a mini conglomerate with minority stakes in some of the best public companies which won’t be disrupted too much by technology
Reminder that PSH will acquire shares in PSHT (I believe once AND IF it merges) but it also has the right to buy a lot of shares at a higher price of 24 USD between 3 and 10 years after merger, which could be very profitable if the merger is successful and the company does well.
It is kind of like having some relatively cheap and very long term call options on the company the SPAC acquires.
Its trading at a ridiculous 36% discount to NAV as well last time I checked, wider even that the 20-30% average for last few years. I think I’m going to pick some of these up tomorrow and hope we get what we’re all expecting from PSTH shortly. Don’t like the valuations the hospitality businesses in the portfolio are trading at but it just cant get much lower.