Jefferies analyst Matthew Hose initiates coverage on Pershing Square USA (NYSE: PSUS) with a Buy rating.

The analyst comments: “PSUS offers U.S. closed-end fund investors exposure to Pershing Square's core strategy, benefiting from the manager's very strong track record of performance, company engagement, and potential asymmetric hedging of the portfolio. Longer-term net returns will also be aided by the lack of a performance fee, while we believe the discount to NAV offers an attractive entry point.

PSUS is a U.S. listed closed-end fund that will hold large minority positions in 12 to 15 high quality companies that are simple, predicable, and free-cash-flow generative, but also businesses that are significantly undervalued and have a catalyst to realise value. Manager Pershing Square is historically known for high-profile activist campaigns and proxy battles, albeit engagement typically now occurs behind closed doors. The fund will also potentially utilise asymmetric hedges to protect the portfolio against specific macroeconomic risks and to benefit from market volatility.”

For an analyst ratings summary and ratings history on Pershing Square USA click here. For more ratings news on Pershing Square USA click here.

Shares of Pershing Square USA closed at $41.60 yesterday.