March 3 (Bloomberg) -- William Ackman’s hedge fund that invests solely in Target Corp. fell 33.3 percent in February, bringing the loss since inception to 93 percent, according to an e-mail sent to investors.

The decline in Pershing Square IV fund was more than three times that of Target shares in February. Ackman made his bet using options rather than the underlying stock, which can magnify gains or losses on an investment. Target tumbled about 9 percent last month.

Ackman last month told investors seeking redemptions that they would get their money back in March.

Ackman, 42, started his fund investing in the Minneapolis- based retailer in 2007 with $2 billion. A call to his office wasn’t immediately returned.

To contact the reporter on this story: Katherine Burton in New York at kburton@bloomberg.net

Last Updated: March 3, 2009 11:43 EST