The Dow scored its best day in over a year by rallying 742 points (1.85%) to close at a record-shattering 40,954.48.

The Russell 2000 wasn’t left out of the fun, jumping a hefty 3.5%.

Caterpillar and UnitedHealth led the way, with Caterpillar climbing over 4% and UnitedHealth soaring more than 6% thanks to impressive earnings. Bank of America and Morgan Stanley also had a good day, with Bank of America gaining over 5%.

For what feels like the first time since the dinosaurs roamed, tech stocks decided to take a back seat this time, but the S&P 500 still added 0.64%, and the Nasdaq edged up 0.2%. The market is on fire due to the lowest inflation reading in three years, leading traders to bet 100% (yes, you read that right) on a rate cut by the Federal Reserve in September.

Before we get to our main story, here’s the heatmap for today.

“Twitter Hedge Fund” Allows You to Invest Alongside Billionaire Bill Ackman for Just $50

Bill Ackman is at it again. The billionaire hedge fund manager, known for his bold bets and equally bold personality fighting Harvard professors on Twitter, is gearing up to launch Pershing Square USA, a $25 billion investment fund. 

If successful, this move could place him alongside the likes of Saudi Aramco and Alibaba in the IPO Hall of Fame. Leveraging his massive social media following to pump up the fund’s valuation. Does this strategy sound familiar?

Ackman has been working his magic on social media, especially on X (formerly Twitter), where he’s built a fan base that rivals a pop star. Over the past year, his posts have ranged from critiquing President Joe Biden to endorsing former President Donald Trump and calling out university bosses for tolerating antisemitism. 

(Source: New York Times)

These hot takes have helped him amass over a million followers, and he’s now planning to convert this online clout into financial power like a real investing Top G.

In his investor pitches, Ackman highlights his million-strong social media following as a key asset. He envisions Pershing Square USA as a highly valued entity trading at multiples of its book value. To make it even more appealing, he plans to host a Warren Buffett-style annual meeting. But instead of talking about Coca-Cola and McDonald's dividends to a seasoned crowd, he'll likely spend the event boasting about how he’s predicted 20 out of the last 5 stock market crashes and sharing tips on up-and-coming tech companies he’s invested in.

Ackman plans to use his social media platforms to provide real-time updates on his investment strategies. He’ll be discussing his portfolio picks, market moves, and hedges against potential downturns. This transparency is a new twist for Ackman, who has traditionally been more reserved about his investment activities due to regulatory constraints.

During his IPO roadshow, Ackman highlighted how Pershing Square USA will benefit from fewer regulatory restrictions compared to his European-listed fund, Pershing Square Holdings. This freedom means he can share detailed updates on his investment moves without worrying about regulatory backlash. His followers can look forward to posts explaining why he’s buying certain stocks or hedging against specific risks. Wouldn’t it be great if Nancy Pelosi did this?

The new fund will be structured as a closed-end management company listed on the New York Stock Exchange. This setup means investors can buy shares, but the fund’s assets aren’t redeemable like those in a traditional mutual fund. Ackman’s goal is to avoid the discount issues that have plagued his Amsterdam and London-listed funds by maintaining a steady value through long-term investment strategies.

But here’s why you’re really reading this article. In a bid to attract retail investors, Ackman is offering a low entry point with shares priced at $50 each. He’s also steering clear performance fees, a move that’s sure to win brownie points with cost-conscious investors. As one investor put it, “You’re getting Bill Ackman for free.”

Ackman’s ambition doesn’t stop there. He’s eyeing the anchor shareholder spot in some high-profile IPOs, with names like Stripe and Elon Musk’s Starlink in his sights. His plan is to leverage his fund’s clout to secure favorable positions in these up-and-coming giants, setting the stage for substantial gains.

(Source: Business Insider)

Reflecting on his track record, Ackman often points to the impressive performance of Pershing Square Holdings, which delivered a return of 183.8% over five years, despite some notable missteps pre-pandemic. His knack for turning around troubled investments has earned him both respect and skepticism, but his results speak for themselves.

So will Bill’s “Roaring Kitty” style of investing grow his billion dollar fortune into more vacation homes? Or will it be the punchline of every trader on Wall Street Bets soon? This will be a fun story to watch over the next few months, and who knows, maybe this will replace traditional hedge funds once and for all.

Stock.News has positions in Coca Cola and Mcdonalds.