Nov 21 (Reuters) - Billionaire investor Bill Ackman

plans to take his hedge-fund firm Pershing Square and a new

investment fund public early next year, the Wall Street Journal

reported on Friday, citing people familiar with the matter.

The move would mark a significant milestone for the activist

investor whose elaborate commentary on finance and politics is

closely watched in New York as well as Washington.

The new fund, Pershing Square USA, is set to be traded on

the New York Stock Exchange and will offer investors free shares

in Pershing Square as an incentive, the WSJ said.

The report added that partners could give away up to 10% of

Pershing Square shares, which may value the firm well above a

valuation of $10.5 billion in 2024.

The Financial Times reported earlier on Friday that Ackman

was preparing a listing of Pershing Square, without mentioning

any other plans.

Talks for the listings are preliminary and could ultimately

be delayed or not lead to a public offering depending on the

market conditions, both newspapers said.

Pershing Square declined to comment on the FT report. It did

not immediately respond to a request for comment on the WSJ

report.

After the busiest fall IPO season in the U.S. in four years,

filing processes were disrupted by the longest-ever shutdown of

the federal government in Washington.

Founded by Ackman in January 2004, Pershing Square Capital

Management invests in roughly a dozen stocks and is best known

for its activist campaigns.

The FT and WSJ reports rekindle listing hopes for Pershing

Square after a 10% stake sale for $1.05 billion last year, which

Reuters reported was a precursor to a potential initial public

offering.

If Pershing proceeds with a listing, it would join a small

club of publicly traded alternative asset managers.

While private equity giants like Blackstone and KKR

have thrived in public markets, pure-play hedge funds

have had a mixed record because of the unpredictability of their

earnings.

British hedge fund Man Group ( MNGPF ) is set to post its

third negative year in four years, while Ackman's Europe-listed

hedge fund Pershing Square Holdings is up nearly 21%

this year.

Blue Owl Capital, which Ackman has previously

likened to the structure of his own business, is down nearly 40%

this year amid credit market jitters.