ToplineThe initial public offering for billionaire Bill Ackman’s hedge fund Pershing Square was off to a rocky start after opening on Wednesday afternoon, with shares for his company’s closed-end fund trading roughly 16% below their target price.Bill Ackman’s hedge fund filed paperwork to take the company public in March.gettyKey FactsWednesday’s IPO marked two firms trading on the New York Stock Exchange—the closed-end fund Pershing Square USA Ltd. (PSUS), and asset manager Pershing Square Inc. (PS).Shares for Pershing Square USA opened at $42 per share, and were trading at $41.28 on Wednesday around 3:50 p.m. EDT—well below the firm’s target for $50 per share.Meanwhile, Ackman’s asset manager opened at $24 per share, but dropped to $22.50 by 3:50 p.m.On Tuesday, Pershing Square said it raised $5 billion as part of the IPO, and Reuters later reported most of this funding came from institutional investors.Key BackgroundAckman first announced plans to take his company public in 2024, initially hoping to raise as much as $25 billion. However, Ackman called off the IPO just days before the company was set to go public. The billionaire has since compared his company to Warren Buffet’s Berkshire Hathaway, which he praised for allowing “anyone who could afford one share, about $20 back in the early 1960s” the ability to invest in the company. Speaking to CNBC on Wednesday morning, Ackman said his company would hold investor days and annual meetings like Buffet’s company. “You know, hedge funds are sort of known for managing money for rich people,” Ackman told “Squawk on the Street,” claiming that investors with just $50 now had the opportunity to become a “long-term shareholder” in the fund.Forbes ValuationWe estimate Ackman’s net worth at $9 billion, making him the 378th-wealthiest person in the world as of Wednesday. Ackman, famous for his activist investor positions and outspoken presence on social media, built his wealth primarily from managing hedge funds, including Pershing Square, which he founded in 2004. The company oversees about $30 billion in assets, which is primarily concentrated in companies like Amazon and Uber.Further ReadingForbesBill Ackman’s Pershing Square Files For New York Stock Exchange IPOBy Ty Roush