Inside Bill Ackman’s $35b fund, even janitors and receptionists own millions
From cleaners to traders, staff share in hedge fund’s multibillion-dollar gains
Billionaire investor Bill Ackman says every employee at his hedge fund, Pershing Square, owns company stock worth millions of dollars — from senior investment staff to receptionists and cleaners.
Ackman said the broad-based ownership model is a key part of the firm’s workplace culture and has helped Pershing Square retain its employees.
Speaking on Fortune’s Titans and Disruptors of Industry podcast, Ackman said the firm believes in taking care of its employees.
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A $35 billion firm with 48 employees
Pershing Square manages about $35 billion in assets but has a workforce of just 48 people, according to Fortune.
Ackman said every employee owns “multiple millions of dollars” worth of stock in the company, regardless of their role.
“We believe in taking care of our people,” he told Fortune.
He said the approach means employees feel they are directly contributing to the firm’s success and have a stake in its performance.
Flexible summers and generous benefits
Pershing Square’s retention strategy extends beyond employee ownership.
Workers are generally expected to be in the office five days a week, but the policy applies for only 10 months of the year. During July and August, employees have considerably more flexibility.
The investment team often works together from the Hamptons during the summer, with employees staying in homes they rent or own.
The firm also provides healthy meals, gym access and comprehensive healthcare benefits, according to Ackman.
Ackman said Pershing Square has not had a single “undesired departure” among its 48 employees.
“We look after people, and so that when you operate that way, people don’t think about going anyplace else,” he said.
Ackman’s approach to hiring
Ackman also credits Pershing Square’s success to its approach to hiring.
He said he looks for people with both strong professional skills and “great human qualities”.
“There are a lot of super talented people, but when you combine a super talented person with great human qualities, that’s a great base to build a great culture,” he said.
Pershing Square was founded by Ackman in 2004 and has become one of Wall Street’s best-known activist investment firms. The firm has held major stakes in companies including Chipotle, Universal Music Group and J.C. Penney.
Ackman sees AI as the next big advantage
Ackman also discussed the potential impact of artificial intelligence, saying AI could make high-level expertise accessible to almost anyone.
He expects the technology to transform sectors including education and healthcare by making complex information easier to understand and giving people greater access to specialised knowledge.
“This is the era in which you can learn anything,” Ackman told Fortune.
He argued that people can increasingly use AI to learn about subjects without relying solely on traditional sources such as books or expensive expert advice.
“We’re in a world in which intelligence — very high level of intelligence — is available basically for free,” he said.
