Is this correct? Bill Ackman has stated that he will not charge management and performance fees for his proposed holding company structure, similar to Warren Buffett's approach with Berkshire Hathaway. Ackman’s firm, Pershing Square Capital Management, currently operates as a hedge fund, which typically charges both a management fee (a percentage of assets under management) and a performance fee (a percentage of investment gains). However, if Howard Hughes Holdings (HHH) transforms into a publicly traded holding company, it would not operate like a hedge fund and instead follow Berkshire Hathaway’s model. Why Would Ackman Drop Fees? Permanent Capital Structure – Like Berkshire, Ackman envisions a company where investors hold shares in a publicly traded entity rather than having money locked in a hedge fund. Long-Term Shareholder Alignment – By eliminating fees, he avoids conflicts of interest and aligns himself more with long-term shareholders, just like Buffett. Tax Efficiency – Berkshire Hathaway benefits from a tax-efficient structure, as it reinvests earnings without distributing taxable gains to investors like a hedge fund does. Ackman has often admired Buffett's strategy and has expressed his desire to replicate it, meaning investors in this new entity would benefit from fee-free compounding over time.
can’t happen. Ackman is an activist investor. Buffet is a passive investor. Activists (at best) are like house flippers. Buffet is like an art collector. Ackman has another motive here.
You are betting that Ackman is going to change his stripes. From quick buck artist to a long term buy & hold investor? That is a risky bet I wouldn't count on. It may began that way, but he will eventually have style drift.