Update: Bill Ackman’s “Twitter Hedge Fund” Dream Turns Into a Bedwetting Reality

Remember when I told you that you could invest in Bill Ackman's Twitter-famous hedge fund for just $50? Yeah, that was the plan until the universe decided to play a practical joke. Ackman’s highly anticipated IPO for Pershing Square USA Ltd. was supposed to roar like a lion across Wall Street, but now it sounds more like the neighbor’s kitten.

Bill Ackman, the hedge fund billionaire who’s predicted 20 of the last 2 stock market crashes, initially floated the idea of raising a whopping $25 billion for his US closed-end fund. Fast forward to now, and that ambitious target has been downsized to a more modest $2 billion. Yep, the guy who was shooting for the moon ended up landing on the neighbor's rooftop instead.

The IPO was set to price on August 5, right after the close of the market, with trading to kick off the next day on the New York Stock Exchange. But in true Wall Street drama fashion, regulatory approvals and other hiccups meant the debut was delayed.

Pershing Square USA’s IPO hit another pothole when Seth Klarman’s Baupost Group decided to take a hard pass on investing in the fund. Ackman had initially touted Baupost as a star player with a planned $150 million investment. But with Baupost bowing out, Ackman’s dreams went from winning the middle school talent show to waking up and realizing he peed the bed at a sleepover.

(Source: Business Insider)

The revised plan, filed this morning, shows that the fund is now hoping to scrape together $2 billion—a far cry from the $25 billion originally targeted. Heck, it's not even hitting the $2.5 billion to $4 billion range mentioned in last week's investor letter. The firm now plans to offer 40 million shares priced at $50 each. So, at least the $50 pinky promise is still being kept.

Ackman's charisma and social media savvy, flaunting over 1 million followers on X, seemed like his ace in the hole to lure in retail investors. However, his grand plans hit a bump in the road when investors started raising eyebrows over the proposed listing, especially with Ackman's bold claims that the fund would trade at a premium. And let's be real, tweeting a conspiracy theory about the Trump assassination attempt and then deleting it 10 minutes later isn’t exactly reassuring in his decisiveness either.

Ackman has been working overtime, practically begging investors to place their orders with the underwriting banks. He's been hammering home the importance of creating a sense of deal momentum to woo institutional investors. It’s like trying to convince your friends to join you in a pyramid scheme—er, I mean, a fantastic investment opportunity.

Despite these Herculean efforts, launching the fund at a smaller size is aimed at calming the nerves of big investors who are worried about the stock’s performance post-launch. Pershing Square Capital Management, which manages both the US and European funds, will anchor the IPO with a $500 million contribution. This move follows Ackman’s recent $1 billion raise from selling a 10 percent stake in his hedge fund to investors, including Israeli insurance company Menora Mivtachim and Brazil’s BTG Pactual.

The fund’s listing is now expected to take place on August 5, with trading set to begin the following day, pending the SEC’s green light.

Stock.News does not have positions in companies mentioned.