Bill Ackman - Perishing Square Capital Management Portfolio

Bill Ackman - Perishing Square Capital Management Q1 2024 Portfolio

Perishing Square Capital Management, a hedge fund managed by Bill Ackman, disclosed 8 security holdings in their SEC 13F filing for the second quarter of 2024, with a total portfolio value of $10,411,824,000

 

As of Q2 2024, Bill Ackman’s Pershing Square Capital Management portfolio reflects strategic adjustments across a variety of sectors, with both reductions and new additions indicating shifts in investment priorities. Below is a detailed overview of his top holdings:

 

HLT – Hilton Worldwide Holdings

  • Portfolio Allocation: 18.76%
  • Recent Activity: Reduced holdings by 2.49%.
  • Shares Held: 8,952,290.
  • Reported Price: $218.20 per share.
  • Value at Reported Price: $1,953,390,000.

 

Hilton remains the largest holding in Ackman’s portfolio, reflecting continued confidence in the global hospitality leader despite a slight reduction in shares. This indicates a long-term belief in the recovery and growth potential of the travel and leisure industry.

 

CMG – Chipotle Mexican Grill Inc.

  • Portfolio Allocation: 17.34%
  • Recent Activity: Reduced holdings by 22.54%.
  • Shares Held: 28,815,165.
  • Reported Price: $62.65 per share.
  • Value at Reported Price: $1,805,270,000.

 

Chipotle remains a significant position, though Ackman has reduced his stake considerably. This reduction may suggest profit-taking or a strategic rebalancing of the portfolio, while still maintaining a strong conviction in the fast-casual dining sector.

 

QSR – Restaurant Brands International

  • Portfolio Allocation: 15.64%
  • Recent Activity: Reduced holdings by 0.88%.
  • Shares Held: 23,142,542.
  • Reported Price: $70.37 per share.
  • Value at Reported Price: $1,628,541,000.

 

Restaurant Brands International continues to be a major holding, with only a slight reduction in shares. Ackman’s investment in this company highlights his confidence in its portfolio of well-known brands and its potential for global expansion.

 

GOOG – Alphabet Inc. CL C

  • Portfolio Allocation: 13.3%
  • Recent Activity: Reduced holdings by 19.51%.
  • Shares Held: 7,547,582.
  • Reported Price: $183.42 per share.
  • Value at Reported Price: $1,384,377,000.

 

The reduction in Alphabet’s Class C shares indicates a strategic move to take profits or rebalance the portfolio while still maintaining a significant position in one of the world’s leading technology companies.

 

HHH – Howard Hughes Holdings Inc.

  • Portfolio Allocation: 11.74%
  • Recent Activity: No change reported.
  • Shares Held: 18,852,064.
  • Reported Price: $64.82 per share.
  • Value at Reported Price: $1,221,991,000.

 

Howard Hughes Holdings continues to be a substantial holding, reflecting Ackman’s confidence in the real estate development and management sector, particularly in master-planned communities.

 

CP – Canadian Pacific Kansas City

  • Portfolio Allocation: 11.32%
  • Recent Activity: Reduced holdings by 0.86%.
  • Shares Held: 14,965,641.
  • Reported Price: $78.73 per share.
  • Value at Reported Price: $1,178,245,000.

 

Canadian Pacific Kansas City remains a key position with a minor reduction, indicating continued belief in the transportation sector, particularly in North American railways.

 

GOOGL – Alphabet Inc.

  • Portfolio Allocation: 6.97%
  • Recent Activity: Reduced holdings by 8.46%.
  • Shares Held: 3,986,488.
  • Reported Price: $182.15 per share.
  • Value at Reported Price: $726,139,000.

 

Ackman has also reduced his stake in Alphabet’s Class A shares, aligning with the reduction in Class C shares, but the company remains an important part of the portfolio, signifying ongoing confidence in Alphabet’s diverse revenue streams.

 

BN – Brookfield Corp.

  • Portfolio Allocation: 2.73%
  • Recent Activity: New Buy.
  • Shares Held: 6,854,510.
  • Reported Price: $41.54 per share.
  • Value at Reported Price: $284,736,000.

The addition of Brookfield Corp. to the portfolio reflects Ackman’s interest in global asset management and real estate, betting on Brookfield’s extensive portfolio and its ability to generate strong returns.

 

NKE – NIKE Inc.

  • Portfolio Allocation: 2.2%
  • Recent Activity: New Buy.
  • Shares Held: 3,040,132.
  • Reported Price: $75.37 per share.
  • Value at Reported Price: $229,135,000.

 

The inclusion of Nike signals confidence in the global sportswear and footwear giant, betting on its strong brand, innovation, and continued global growth, especially in emerging markets.

 

Analysis of Top Holdings:

 

1.   Hilton Worldwide Holdings: The largest position, slightly reduced, reflecting ongoing confidence in the hospitality sector.

2.   Chipotle Mexican Grill Inc.: Significant reduction, possibly for profit-taking, but still a major holding in fast-casual dining.

3.   Restaurant Brands International: Minor reduction, indicating continued belief in global brand potential.

4.   Alphabet Inc. CL C: Substantial reduction, likely for rebalancing, but remains a significant tech investment.

5.   Howard Hughes Holdings Inc.: No change, highlighting confidence in real estate development.

6.   Canadian Pacific Kansas City: Minor reduction, maintaining a strong position in transportation.

7.   Alphabet Inc.: Reduction in Class A shares, aligning with the overall Alphabet position strategy.

8.   Brookfield Corp.: New addition, showing interest in global asset management.

9.   NIKE Inc.: New buy, reflecting confidence in the global sportswear leader.

 

Overall, Bill Ackman’s Q2 2024 portfolio adjustments demonstrate a strategic rebalancing with some profit-taking, while also introducing new investments in companies with strong growth prospects. The portfolio reflects a diversified approach with significant investments in hospitality, technology, real estate, and consumer goods.

 

Who is Bill Ackman ?

May 11, 1966:

  • William Albert Ackman was born in Chappaqua, New York.

1988: 

  • Ackman graduates from Harvard University with a degree in economics.

1989: 

  • Ackman joins Goldman Sachs as an investment banker.

1992:

  • Ackman leaves Goldman Sachs to start his own hedge fund, Gotham Partners, with $3 million in capital.

2002: 

  • Gotham Partners loses 40% of its value due to a bad bet on the telecom industry.

2003:

  • Ackman launches Pershing Square Capital Management, a hedge fund management company based in New York City.

2007:

  • Ackman becomes widely known for his high-profile battle with the management of Target Corporation. He acquires a stake in the company and pushes for changes to maximize shareholder value.

2008:

  • During the financial crisis, Ackman bets against the bond insurers MBIA and Ambac, predicting their downfall. This bet ultimately proves successful, earning Ackman’s fund billions of dollars in profits.

2011:

  • Ackman takes a significant stake in J.C. Penney and becomes its largest shareholder. He attempts to implement major changes in the company’s strategy and leadership, but his efforts fail, resulting in substantial losses for his fund.

2014:

  • Ackman becomes involved in a highly publicized short-selling campaign against Herbalife, a multi-level marketing company. He accuses Herbalife of being a pyramid scheme and places a billion-dollar bet against the company’s stock.

2017:

  • Ackman exits his short position on Herbalife, admitting that the campaign was not as successful as he initially anticipated. The bet resulted in significant losses for his fund.

2020:

  • Ackman gains attention for his early warning about the severity of the COVID-19 pandemic. In a series of interviews, he expresses his concerns about the virus and calls for a nationwide shutdown.

2020:

  • Pershing Square Capital Management launches a special purpose acquisition company (SPAC) called Pershing Square Tontine Holdings (PSTH). The SPAC raises $4 billion, making it the largest-ever IPO of a SPAC at the time.

2021:

  • PSTH fails to complete a merger deal within its two-year deadline, resulting in the dissolution of the SPAC. Ackman announces plans to launch a new SPAC in the future.

2022:

  • Ackman advocates for Universal Music Group (UMG), a division of Vivendi, to go public. Pershing Square Tontine Holdings II (PSTH II), Ackman’s new SPAC, agrees to merge with UMG, valuing the music label at around $40 billion.

2023:

  • The merger between PSTH II and Universal Music Group is completed, and UMG starts trading on the Amsterdam Euronext stock exchange.

Interesting facts

Ackman is known for his activist investing approach, often taking significant stakes in companies and pushing for changes to increase shareholder value.

He has been involved in several high-profile battles with company management and has made large bets on both long and short positions.

Ackman is a prominent philanthropist. In 2016, he signed the Giving Pledge, committing to donate the majority of his wealth to charitable causes.

He is a well-known advocate for education reform and has supported various organizations focused on improving public schools.

Ackman has a background in real estate and initially worked at his father’s company before venturing into the world of finance.

 

Bill Ackman's Investing Principles

I’m not emotional about investments. Investing is something where you have to be purely rational and not let emotion affect your decision making – just the facts.

Bill Ackman

Investing is a business where you can look very silly for a long period of time before you are proven right.

Bill Ackman

Short-term market and economic prognostication is largely a fool’s errand, we invest according to a strategy that makes the need to rely on short-term market or economic assessments largely irrelevant.

Bill Ackman

I think most investors overdiversify because they’re lazy. They haven’t done enough research into any of their companies. If they’ve got 200 positions, do you think they know what’s going on at any one of those companies at this moment?

Bill Ackman

What the market tells you in the short term is what a certain subset of people believe. That doesn’t mean they’re right.

Bill Ackman

 We invest generally in very good companies that have lost their way. And with better management, enormous value can be created.

Bill Ackman

In the investing business you need a high degree of confidence but you also need a high degree of humbleness and you have to balance those two… Humbleness comes from mistakes.

Bill Ackman

If you can’t predict the cash flows, you don’t know what it’s worth. If you don’t know what it’s worth, you can’t invest.

Bill Ackman

If you’re investing for the long-term, you want to invest in businesses that have very little debt.

Bill Ackman

We expect to continue to concentrate the substantial majority of our capital in about 8 to 12 investments, and estimate that our typical holding period will be long-term, typically four or more years.

Bill Ackman

It’s safest to invest in businesses that aren’t controlled. Unless the controlling shareholder is someone that we trust, unless it’s someone that has a great track record for taking care of all the minority investors, it can be a risky proposition to invest in because you’re at the whim of the controlling shareholder.

Bill Ackman

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