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Item 3 — Quantitative and Qualitative Disclosures About Market Risk
Pershing Square Inc · 10-Q · Q2 FY2026 · Period ended Jun 30, 2026
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Our exposure to market risks primarily relates to PSCM’s role as investment advisor to our funds and the impact of movements in the underlying value of their investments. Our management fees and performance fees are the primary sources of revenue that could be impacted. The underlying value of our funds’ investments may fluctuate in response to general equity and other market conditions.
We also have exposure to market risks from PSCM’s provision of investment advisory and other services to HHH pursuant to the HHH Services Agreement and the impact of changes in the market capitalization of HHH. The HHH Variable Management Fee is the source of revenue that could be impacted. The market capitalization of HHH may fluctuate in response to general equity and other market conditions.
Additionally, interest rate movements can adversely impact the amount of interest that we pay on debt obligations bearing variable rates.
There have been no material changes to the quantitative and qualitative disclosures about market risk disclosed in our IPO Prospectus.