Insights into Pershing Square’s Latest 13F Filing
Bill Ackman (Trades, Portfolio), renowned for his activist investment approach through Pershing Square, has made notable changes to his portfolio in the second quarter of 2024. Starting his career in real estate before founding Gotham Partners and later Pershing Square in November 2003, Ackman focuses on acquiring stakes in undervalued companies and pushing for strategic changes to unlock shareholder value. His latest 13F filing reveals significant transactions that reflect his investment philosophy.
New Additions to the Portfolio
During the second quarter, Bill Ackman (Trades, Portfolio) made new investments in two companies:
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Brookfield Corp (NYSE:BN) was the primary addition with 6,854,510 shares, representing 2.73% of the portfolio and valued at $284.74 million.
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Nike Inc (NYSE:NKE) also saw a significant entry with 3,040,132 shares, accounting for approximately 2.2% of the portfolio, totaling $229.13 million.
Key Reductions in Existing Holdings
Ackman’s strategy also included reducing positions in several key stocks:
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Chipotle Mexican Grill Inc (NYSE:CMG) saw a reduction of 8,384,035 shares, a 22.54% decrease, impacting the portfolio by -4.53%. The stock’s average trading price was $62.12 during the quarter, with a three-month return of -18.70% and a year-to-date gain of 12.92%.
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Alphabet Inc (NASDAQ:GOOG) was reduced by 1,829,613 shares, marking a 19.51% decrease and a -2.59% portfolio impact. The stock traded at an average price of $170.1 during the quarter, with a -5.65% return over the past three months and a 15.10% increase year-to-date.
Portfolio Overview and Sector Focus
As of the second quarter of 2024, Bill Ackman (Trades, Portfolio)’s investment portfolio included 10 stocks. The top holdings were 18.76% in Hilton Worldwide Holdings Inc (NYSE:HLT), 17.34% in Chipotle Mexican Grill Inc (NYSE:CMG), 15.64% in Restaurant Brands International Inc (NYSE:QSR), 13.3% in Alphabet Inc (NASDAQ:GOOG), and 11.32% in Canadian Pacific Kansas City Ltd (NYSE:CP). The investments are predominantly concentrated in five industries: Consumer Cyclical, Communication Services, Real Estate, Industrials, and Financial Services.
This strategic reshuffling by Bill Ackman (Trades, Portfolio) highlights his ongoing commitment to optimizing portfolio performance by actively managing holdings based on their market performance and potential for value realization. The significant reduction in Chipotle, despite its positive year-to-date return, suggests a strategic decision to capitalize on recent gains amidst market volatility. Investors and market watchers will undoubtedly keep a close eye on these moves as they unfold further in the financial landscape.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
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