From Nasdaq: 2024-04-28 03:50:00

Bill Ackman, founder of Pershing Square Capital Management, is known for his successful investment strategies. With a focus on large-cap, high-quality companies in North America, Pershing Square has outperformed the S&P 500 with a 31% annualized return over the past five years. Ackman’s top holdings include Chipotle, Hilton, and Restaurant Brands.

Chipotle is Pershing Square’s largest holding, with a 22% stake worth over $2.4 billion. Ackman cites the company’s focus on exceptional food and operational excellence for its impressive growth. Revenue grew 14% in 2023, leading to a jump in diluted EPS. Chipotle announced a 50-for-1 stock split, its first in 30 years.

Hilton is another significant position for Pershing Square, making up 17% of the portfolio. Ackman praises the hotel operator’s exceptional management team and profit growth, with revenue up 17% and adjusted EPS rising 27% in 2023. Hilton’s market share increases and revenue per room gains have impressed Ackman.

Restaurant Brands International, owner of Burger King and Popeyes, is a 16% holding for Pershing Square. Ackman sees long-term growth potential in the company’s franchised royalty model and discounted valuation. Global sales grew 12% in 2023, boosting EPS by 16%. Ackman has been invested in Restaurant Brands since before its IPO.

Alphabet, with 14% of Pershing Square’s portfolio, has seen strong revenue growth and margin expansion. The company’s core advertising business improved throughout 2023, with revenue up 10% and EPS surging 27%. Ackman invested in Alphabet based on its AI positioning and attractive valuation.

Pershing Square’s holdings also include Canadian Pacific Kansas City, Howard Hughes Holdings, and Lowe’s. The hedge fund’s sell-off of its stake in Lowe’s was driven by concerns about the macroeconomic environment and industry conditions. Ackman remains confident in his investment strategies and the long-term potential of his portfolio companies.



Read more at Nasdaq: Billionaire Investor Bill Ackman Has 100% of His $11 Billion Portfolio in Just 8 Stocks