Ackman Apologizes For Abysmal Performance, Allows Redemptions... Shortly
Bloomberg reports that Bill Ackman has done the unthinkable and actually apologized for his performance (granted, it was some performance). The man who single-handedly destroyed Ambac and MBIA wrote the following in a February 8th letter to investors: "I apologize profusely for the fund’s results to date."
Ackman also gives some vague assurances that investors may or may not be able to withdraw 10 cents on the dollar in about a month.
Frankly, a fund manager should not have to apologize for bad performance, nor take props for outperforming: the fact that he is in business in the first place should be indicative enough. If he sucked, he wouldn't have a fund to run.
If any apologies are due, it is from investors who were retarded enough to give Ackman 2 and 20 to invest $2 billion in one stock. I will repeat that because it bears repeating - ONE STOCK!!! No secrecy here, no crazy active-managed profit-taking, no insane CDS, MBS, RBS, LSD trading action that only hedge funds can partake in... The fund was called the Target Fund for god's sake. Ackman had given full disclosure what PSIV was investing in; investors knew what they were getting into. But what makes our brains bleed, is WHY THE HELL DID PEOPLE NOT JUST BUY TGT STOCK? You want to give a guy 2% a year plus pocket only 80% of the upside by doing something you can do FOR FREE in the market by calling your E-trade broker...
Guess Boaz won't be getting a callback for that PSIV PM job after all.