Pershing Square Activist Presentation Deck
Pershing Square's Core Hedging Principles
We seek to opportunistically invest in hedges to protect our portfolio
against specific macroeconomic risks and capitalize on market volatility
▸ Asymmetric payoff structures
■ Limited upfront investment and carrying costs
■ Opportunities to generate large (>10x) multiples of capital
Limited downside in the event potential risk does not transpire
► Monetization provides liquidity during periods of market dislocation
■ Becomes a large funding source at precisely the time stocks become cheap
Enables us to increase our exposure to high-quality businesses at deeply
discounted valuations
We believe our selective hedging strategy is a superior alternative to a large cash position or a
continuous hedging program, both of which can be a significant drag on long-term performance
33View entire presentation