Widely renowned for his very public activist investing approach, Bill Ackman, the CEO of Pershing Square Capital Management, has managed to both secure impressive returns and force significant changes in the publicly traded companies he has invested in.
One of Ackman’s strongest suits is versatility — as showcased by his prescient credit-default swap purchases during COVID-19.
The famed investor has given his holdings quite a shakeup throughout the past quarter — and unlike most, he appears unequivocally bullish, per Pershing Square Capital Management’s latest 13F filing.
Picks for you
Ackman quadrupled and tripled his stake in these two companies
Released on November 14, the Q3 report showcases Pershing’s holdings as of September 30. Two of his positions received significant boosts — Nike Inc (NYSE: NKE) and Brookfield Corp (NYSE: BN).
Whereas Pershing held 3,040,132 NKE shares in the previous quarter, now it owns 16,280,338 — marking a 436% increase. Although it is a renowned brand, Nike has been struggling over the course of 2024 — at press time, NKE stock was trading at $76.66, with year-to-date (YTD) losses of 28.05%. Nike recently increased its dividend by 8% quarter-over-quarter — doubtlessly leading to a large payout for Ackman.
In the case of Brookfield Corp, the hedge fund manager purchased 25,881,373 BN shares on top of his previously-owned 6,854,510 — equating to a 378% increase. The company is one of the world’s largest alternative asset management businesses, with a focus on real estate, renewable power, and infrastructure. At the time of publication, BN stock was trading at $56.79 — with impressive YTD gains of 46.18%.
There was also one additional purchase — the hedge fund opened a position in Seaport Entertainment Group (NYSEAMERICAN: SEG), a business that operates at the crossroads of entertainment and hospitality. Pershing purchased 2,094,673 SEG shares worth roughly $57,435,000
Ackman cut his stake in Hilton — but most of his holdings are untouched
The only notable sale seen in the filing is the activist investor’s reduction in his stake in Hilton Worldwide Holdings (NYSE: HLT). The activist investor had first invested in the company way back in 2018 — and has since overseen a shift to a franchising model that was accompanied by a roughly 200% surge in HLT stock price.
However, Pershing has cut its stake in the hospitality business by 18% — having sold 1,582,122 HLT shares. The hedge fund continues to hold 7,370,168 shares. HLT stock is currently trading at $248.42, having had a decent year thus far with YTD gains at 37.96%.
Most of the fund’s holdings were untouched — Ackman’s stake in Chipotle (NYSE: CMG), and Restaurant Brands International (NYSE: QSR) remain unchanged, while his exposure to Howard Hughes Holdings (NYSE: HHH) was trimmed by just 1%.On the whole, the activist investor is net long a total of 39,404,512 shares.
Featured image via Shutterstock
