Israeli insurance and finance firm Menora Mivtachim Holdings Ltd. (TASE: MMHD) has reported that it will invest $70 million for its investors in Pershing Square, the US hedge fund managed by Bill Ackman.
This follows Ackman's decision over the weekend to sell 10% of Pershing Square to various institutions and investors for $1 billion. It became clear yesterday that Menora Mivtachim is one of the institutions.
Eight months ago Menora Mivtachim invested in a 1.2% stake in Pershing Square's tradeable hedge fund. That investment has risen by 40% and is now worth NIS 120 million.
Menora Mivtachim said, "After comprehensive due diligence, it was decided to invest, in view of the impressive over-performance of the fund, which has beaten benchmarks in a clear and significant way, in over 20 years of activity. Menora Mvethaim sees this investment as an expression of trust and the expansion of the strategic cooperation between the entities, the purpose of which is to continue to increase value for members and the group's insurees."
Jefferies investment bank, which has recently expanded its activities in Israel, was involved in the deal.
Published by Globes, Israel business news - en.globes.co.il - on June 4, 2024.
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