Hedge fund Pershing Square Holdings (PSH) is introducing a quarterly dividend of $0.10 per share, one representing a 2.5% yield based on a recent $15.70 share price.

The board is seeking to attract income investors and expand the investor base, in turn helping to narrow the discount to net asset value, which stands at 24.3% according to the Association of Investment Companies (AIC).

Managed by famed activist Bill Ackman, the closed-ended fund makes concentrated investments in high quality, cash generative North American companies with high barriers to entry, yet has underwhelmed since a high profile 2014 launch.

Encouragingly however, Pershing Square has started 2019 very strongly, with the likes of Chipotle Mexican Grill, Restaurant Brands, Fannie Mae and Freddie Mac generating positive returns.

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