Why $PSUS deserves a premium to NAV and $PS deserves a premium multiple | Marlton's James Elbaor

James Elbaor of Marlton argues that Pershing Square US (PSUS), the newly IPO'd closed-end fund, will trade at a premium to net asset value (NAV) over time—not because of its structure, but because of the unparalleled franchise quality and track record of Bill Ackman and his team. Despite trading at a 17% discount initially, Elbaor believes the market will eventually recognize PSUS as a holding company in disguise, with quarterly earnings calls, transparent reporting, and a compounding capital engine. He contrasts this with traditional closed-end funds and even other holding companies, which rarely trade at premiums. The real value, he says, lies in the permanent capital—$34 billion and growing at 20% annually—that cannot leave, creating massive operating leverage. Meanwhile, the management company PS trades at a 30x fee-related earnings multiple, which Elbaor sees as justified by its 85% ownership by Ackman, its clean income statement, and its ability to generate cash through fee streams and performance incentives. He dismisses concerns about key man risk, citing Ryan Israel’s leadership and a deep bench. The most compelling argument? PS is not just a fund—it’s a compounding machine with optionality, and the market is underpricing its future growth potential.