A Bet On Rising Rates Drives Ackman's First Quarter Gains
percent during March. The biggest winner for Ackman’s Pershing Square Holdings so far in 2021 has been a bet on rising interest rates made in the form of a derivative known as an interest rate swaption. Interest rate swaptions had added 3.8 percentage points to the portfolio by March 23, according to a letter to shareholders in the fund's annual report, released earlier this week. Last year, more than a third of Pershing Square’s outsize gains came from shorts on credit CDS. While it closed out those shorts in March, the hedge fund bought some additional CDS later in the year as spreads n...
Source: institutionalinvestor.com