Target hedge-fund manager apologizes

When your hedge fund's value drops nearly 90 percent in the past year, you have some explaining to do. Added to this situation is the fact that it's specially focused on Target investment. Time for a couple apologies.

William Ackman, founder of Pershing Square Capital, sent a letter to Pershing Square fund IV, (PSIV) investors Sunday to apologize and let them know they have the option to withdraw and redeem their cash. Ackman still seemed confident in Target investment for the long term.

The Wall Street Journal published Ackman's letter. PSIV is "a special-purpose vehicle solely devoted to an investment in Target," the WSJ says. Here is an excerpt:

In my effort to get last week's letter out promptly, I neglected to apologize. I am deeply disappointed by PSIV's dreadful performance and I apologize profusely for the fund's results to date. Over the last few days, we have spoken to both investors who wish to redeem and others who intend to contribute additional capital. We expect to be able to redeem any and all investors who choose to exit in March, in full and in cash. We will provide more details on the timing of distributions shortly.

Bottom line, PSIV has been one of the greatest disappointments of my career to date. That said, we continue to believe that we will ultimately be successful in our investment in Target. I am likely now the largest individual investor in Target through my interests in the various Pershing Square funds including my personal commitment of an additional $25 million of capital to PSIV. I and the rest of the Pershing Square team will work hard to achieve a successful outcome for all of us.

Read the rest of the letter here.