Bullpen.News From Edwin Dorsey
Get Daily Recap Feedback

Friday, August 28, 2026

Back to today

From X

@ToffCap 1 click

ToffCap on X

Every now and then I read write-ups where I agree on the thesis but think it would be insane to act on it. Like $ASTS 's recent short pitch on VIC. Sure execution is important, but 90% of the 'valuation' here is storytelling. So what if they'll miss a quarter or two. Look at the projections. The base for valuation here is not fundamentals, it's faith. Missing a few quarters is not going to break the thesis at all. That won't be enough to break believers' faith. Because that's what is needed to break such stories. Faith needs to be crushed. And that can take a long ass time. And what if in the meantime they'll beat a quarter?
@marginofdanger 2 clicks

marginofdanger on X

I pasted two screenshots from $PS's 424B4. If you look at fee paying AUM, it's $16 bn excl HHH which has a de minimis mgmt fee/carry. Add in $PSUS and you are at $21 bn of fee paying AUM. $PS discloses pro forma mgmt fees of $238 mm but that is net of $91 mm of non-cash amort related to the IPO. So I'm going to give them credit for $329 mm of mgmt fees. Assuming a 65% operating margin and a 20% tax rate, that gives me effective fee paying earnings of $171 mm. $PSH.LN has a 16% incentive fee and $PS is entitled to the performance fees on the first 5% (the team gets beyond that). On $15 bn, this is $15 bn * 5% * 16% = $120 mm or $96 mm after tax. Add up the mgmt fee and performance fee share, and I get $267 mm of expected earnings or $0.67/share. Implies $PS is trading at around ~50x EPS vs. $KKR at 17x, $ARES at 20x, $BX at 21x. Of course you can layer in some minor $HHH economics and it takes down the multiple a couple of turns. But you could also layer in a few years of sub 5% returns and that takes away the performance fee too. Certainly a 50x EPS valuation is pretty common for a fast growing higher ROIC biz. But it's by no means cheap. The question is, how will Ackman raise any money from here? $PSH.LN is at a discount to NAV, $PSUS is at a discount to NAV and $HHH is at a discount to NAV. One thing that will allow $PS to grow into its valuation is great results as that will 1) scale up the earnings (as it's based on % of AUM) and 2) facilitate new investors. Another way to contextualize the valuation is to simply look at fee paying AUM of $21 bn and compare that to the equity value of $13 bn. That is pretty unprecedented in the land of asset managers but reflects in part the permanent capital and the limited float (I think its just the 20mm shares given in the IPO). Could easily see a lot of price pressure once the 380mm non-IPO related investors are free to sell.

Investor Letters

All letters
RGLD · long

Royal Gold INC

Royal Gold, a $19 billion precious-metals royalty and streaming company, benefits from mine production without operating mines directly.

RGLD $20B
Value Investors Club 1 click

Core Memory

Airbnb Experiences faces a supply bottleneck from manual approvals, while a farm host raised her price from $15 to $25 after stronger…

ABNB $100B
MBI Deep Dives 9 clicks

Publications we follow

Every publication on this site, hand-picked.

130 publications

Newsletters 108

YouTube 4

Blogs 17

Seeking Alpha 52 of 241

Nominate a publication

X accounts we follow

Every account on this site, hand-picked.

90 accounts
Nominate an account

Investor letters we follow

189 firms

Sectors

Ordered by how often our editor reaches for them.