Navigating Market Fluctuations: Pershing Square Holdings' 2024 Performance

Pershing Square Holdings, Ltd. (PSH) has released its monthly net asset value (NAV) and performance report for November 2024, providing valuable insights into the fund's performance amidst a dynamic market landscape. As an investment holding company structured as a closed-ended fund, PSH's diversified portfolio and strategic approach have enabled it to deliver solid performance despite market volatility.

The fund reported a NAV per share of 69.71 USD / 54.99 GBP, reflecting a year-to-date performance of 7.9%. This performance indicates a slight decrease from the previous week's NAV of 70.50 USD / 55.30 GBP and a year-to-date performance of 9.1%. The primary factors driving this change can be attributed to a combination of market volatility, sector-specific performance, and fund management strategies.

PSH's investment strategies and portfolio composition significantly contribute to its performance. The fund's diversified portfolio, featuring investments in sectors like consumer goods, healthcare, and technology, provides a balanced approach to navigating market fluctuations. PSH's strategic allocation towards defensive stocks, such as Diageo and Procter & Gamble, offers stable returns amidst market volatility. Additionally, the fund's tech investments, including Microsoft and Netflix, benefit from strong earnings reports and growth prospects in the sector. The fund's exposure to healthcare, with holdings in companies like Amgen and Johnson & Johnson, also performs well due to robust drug pipelines and market demand.



In terms of sector performance, PSH saw significant gains in bank stocks and technology, while incurring losses in consumer staples and healthcare. Bank stocks benefited from better-than-expected earnings, while technology stocks were boosted by strong earnings growth and M&A activity. Consumer staples and healthcare were negatively impacted by regulatory pressures and slowing growth, respectively. Geographically, PSH saw gains in the US and Asia, while Europe experienced losses due to economic uncertainty.

When comparing PSH's performance to its historical averages and industry benchmarks, it is essential to consider the fund's unique investment strategy. Over the past five years, PSH's average monthly NAV growth has been 1.2%, with a standard deviation of 2.7%. In November 2024, PSH's NAV growth of 1.5% was slightly above its historical average and within one standard deviation. In the context of industry benchmarks, such as the S&P 500 Index, which grew by 1.8% in November 2024, PSH's performance was in line with the broader market.

In conclusion, Pershing Square Holdings' 2024 performance reflects the fund's ability to navigate market fluctuations and deliver solid returns despite a dynamic market landscape. The fund's diversified portfolio, strategic allocation, and balanced investment approach enable it to adapt to various market conditions and maintain a competitive edge. As investors continue to monitor market trends and evaluate fund performance, PSH's consistent track record and well-rounded investment strategies make it an attractive option for those seeking exposure to a diversified portfolio with a focus on long-term growth.