Bill Ackman has unveiled six new holdings, including Netflix, Visa and Mastercard, marking the billionaire investor's biggest portfolio overhaul in years, according to statements from his investment funds.
Ackman acquired shares of Netflix, Visa and Mastercard starting in the second quarter, to be held in his investment funds including Pershing Square USA, which was listed on the New York Stock Exchange in April. He held a stake in Netflix briefly in 2022 before selling at a loss.
His funds are also investing in eye care firm Alcon, exchange operator Intercontinental Exchange and financial data provider S&P Global. Ackman said he believes the firms' earnings are poised for strong growth, which he views as the greatest driver of investment value over time.
Strong growth in earnings is the greatest driver of investment value over time.
Ackman, whose stock picks are closely tracked by professional investors and his 2.7 million followers on social media platform X, added Microsoft to the portfolio this year after its stock price dropped following an earnings report. He argued that the software company would rebound when investors acknowledged its investments in AI. Microsoft has since bounced back, thanks in part to outsize gains following its latest earnings report.
Ackman's portfolio traditionally owns no more than a dozen companies, but now includes Uber Technologies, Meta Platforms, Amazon.com, Fannie Mae and Freddie Mac, among others. He listed both his hedge fund and his new stock-picking fund Pershing Square USA on the New York Stock Exchange.
Pershing Square USA's return through July, compared with a 13 per cent gain for the S&P 500.
Through July, Pershing Square USA was down 3.5 per cent for the year and London-listed Pershing Square Holdings was down 9.2 per cent, compared with a 13 per cent gain for the S&P 500. The performance figures vary slightly depending on the index measure used: another source cites a 10 per cent gain for the S&P 500 total return index, which includes dividends.
Ackman exited his estimated $1.5 billion position in Universal Music Group after the company that represents Taylor Swift and Bad Bunny rejected his $65 billion takeover bid. He turned 60 years old.
Ackman began as one of Wall Street's most voluble activists, pushing for improved performance at companies ranging from Canadian Pacific Railway to Chipotle Mexican Grill. He now prefers to be known as a value investor who has good ideas that corporate management teams want to hear about. Four years ago he said he was retiring his noisy tactics and adopting a quieter approach, characterized by cordial interactions with management teams.
The new names will likely show up in 13-F filings, required by the Securities and Exchange Commission of fund managers with ownership stakes in U.S. companies at the end of the previous quarter. Shares of the firms were mostly higher on Thursday morning on a broad up day for U.S. stocks. Netflix rose 3.3 per cent, S&P Global added 1.1 per cent and others were mostly modestly higher. Pershing Square USA shares were up 1.7 per cent following the investment disclosures and second-quarter earnings released on Wednesday evening.
