Bill Ackman of Pershing Square is launching a closed ended hedge fund listed on the Amsterdam Stock Exchange. What was interesting is that the fund was closed ended (or permanent capital) meaning that Ackman does not have to worry about subscriptions but more importantly redemption’s (which inevitably come at exactly the wrong time – usually when markets have just tanked and are illiquid). This has the effect reducing the funds liquidity risk considerably (and consequently his cash drag from having to keep some powder dry just in case investors suddenly want their mony back). Ackman’s IPO has raised $3bn in new capital and when added to existing investors switching across from his other funds the new fund will have some $6bn in AuM. Ackman is having a stellar year being up 31.5% year to date through September; that said his new fund has had to cut its fees to 1% management and 9% performance fee. Perhaps the exit of Calpers from the hedge funds industry is taking its toll at least on fees anyway.