Pershing Square Capital Management manages investment funds (the "Funds") and provides advisory services to Howard Hughes Holdings Inc. ("HHH"), a publicly listed company. The Funds generally pursue similar investment objectives, while HHH is pursuing a strategy of becoming a diversified holding company. Pershing Square's investment strategies are speculative and entail substantial risks, and clients should be prepared to bear a substantial loss of capital.
Fee Structure
Pershing Square Capital Management primarily advises investment funds, not individual investors. The firm receives a management fee and a performance allocation from these funds. The management fee is generally 1.5% annually of the fund's net asset value. The performance allocation varies depending on the fund and the class of shares, ranging from 16% to 30% of gains above a certain hurdle. The firm also provides advisory services to HHH, a public company, for a quarterly base fee and a variable fee based on the increase in HHH's stock price.