Who is Bill Ackman whose three tweets have started a rout in treasury bonds
Billionaire investor Bill Ackman said he covered his short bet on US Treasuries, saying “there is too much risk in the world to remain short bonds at current long-term rates."
“The economy is slowing faster than recent data suggests," the Pershing Square Capital Management founder wrote in a post on X, the platform formerly known as Twitter.
As the ten-year Tresury bonds reached a new low in last 16 years, Bill Ackman said that there is " too much risk in the world". It was his three tweets that resulted in bond markets going in opposite direction. Yields on 30-year Treasuries fell about 5 basis points to 5.03% Monday. They earlier surged as much as 10 basis points to about 5.18%, the highest since 2007, compared with about 4% at the end of July.
Bill Ackman is the CEO and Portfolio Manager of Pershing Square Capital Management, L.P., an SEC registered investment adviser founded in 2003. Pershing Square is a concentrated research-intensive fundamental value investor in long and occasionally short investments in the public markets. Prior to forming Pershing Square.
Bill Ackman co-founded Gotham Partners Management Co., LLC, an investment adviser that managed public and private equity hedge fund portfolios. Prior to Gotham Partners, Mr. Ackman began his career in real estate investment banking at Ackman Brothers & Singer, Inc. Mr. Ackman received an MBA from the Harvard Business School and a Bachelor of Arts magna cum laude from Harvard College.
Bill Ackman is Chairman of The Howard Hughes Corporation and a member of the board of Universal Music Group N.V. (NA:UMG). He serves as a member of the Investor Advisory Committee on Financial Markets for the Federal Reserve Bank of New York, and a member of the Board of Dean’s Advisors of the Harvard Business School.
Ackman disclosed in early August that he was bearish long-term Treasuries via options as a hedge for his equity investments. He said at the time that structural changes, such as deglobalization and the energy transition would fuel persistent inflation pressures. He added that a flood of bond supply to fund swelling US budget deficits could also push yields higher.
Bill Ackman revealed Monday that he shared Baumohl's sentiments, disclosing that he covered his previous bets against Treasuries on his expectation that the war would push more investor dollars towards U.S. Treasuries.
The yield on the two-year Treasury note last stood at 5.06%. The yield curve between the two-year and 10-year Treasury is the steepest it has been since mid-July. It last stood at minus 22.7. The Treasury Department on Monday auctioned two sets of Treasury bills: $75 billion in 13-week bills and $68 billion in 26-week bills. More supply will come to the market this week in the form of a $51 billion auction by the Treasury of 2-year notes on Tuesday, $52 billion in 5-year notes on Wednesday and $38 billion in 7-year notes on Thursday.