Earlier in the present day, I used to be reviewing the efficiency of FTSE 100 shares over varied durations. I typically do that, aiming to establish the Footsie‘s canines and stars.

Over the previous month or so, a number of of my ‘boring’ UK worth shares have all of a sudden surged in worth. These latest winners embrace varied banking, asset administration and mining shares.

But one in all our most spectacular performers in 2024 is a high-flying inventory my spouse and I purchased lower than seven months in the past. Additionally, it’s one blue-chip share that many buyers have by no means come throughout.

Earnings and progress

Our newest household portfolio incorporates 15 FTSE 100 holdings and 5 FTSE 250 stakes. We purchased nearly all of those for his or her skill to supply market-beating money dividends for passive revenue.

That stated, I’m not averse to purchasing progress shares for capital features. Certainly, our portfolio additionally incorporates seven high-flying, mega-cap S&P 500 shares. However Pershing Sq. Holdings (LSE: PSH) is the clear chief amongst our UK shareholdings.

Hidden worth in a hedge fund

Regardless of having a market valuation of just about £8.8bn, Pershing is understood to only some buyers I’ve met. For the report, it’s an funding belief — a collective funding fund with shares listed on a inventory change.

Guernsey-based Pershing was created in 2012, however solely listed in London in Could 2017. Since then, it has simply crushed the FTSE 100 over nearly all timescales. Right here’s how this inventory has carried out versus the broader index over six time frames:

My desk reveals that for all durations starting from one week to 5 years, Pershing has constantly crushed the Footsie. What’s extra, the longer the timeframe, the broader the margin of victory for it.

For instance, if I’d invested £1,000 into Pershing shares 5 years in the past, I’d have a good-looking £3,139 in the present day. In the meantime, the FTSE 100 would have turned my grand into simply £1,090 (each excluding dividends).

What’s Pershing’s secret?

Pershing invests in a fund from Pershing Sq. Capital Administration, a US hedge fund run by famend American investor William ‘Wild Invoice’ Ackman. This portfolio is very concentrated and at the moment consists of simply 10 US shares.

I selected to take a position with Ackman due to his excellent observe report. His success as an investor has given him a private fortune of $4.3bn. Additionally, hedge funds are normally restricted to the very rich, whereas I can again ‘Wild Invoice’ for beneath £42 a share.

My spouse and I purchased Pershing shares final August for two,989p a share. On Friday (22 March) the closing worth was 4,156p. Thus, we’re sitting on a paper revenue of 39.1% in round six months, beating all of our different FTSE 350 shares.

Then once more, investing in hedge funds will be extremely dangerous. 1000’s have closed down after shedding cash, whereas just a few have blown up in a single day. Moreover, previous efficiency isn’t any information to future returns, so Ackman’s magic contact would possibly fade.

However, I’m more than pleased to carry on to this FTSE 100 super-stock for now!