Hedge fund tycoon Bill Ackman has allocated approximately 43% of his $14.8 billion investment portfolio to mere three company stocks.
Hey there! Let's dive into the world of Bill Ackman, a renowned investor known for his shrewd portfolio management skills. Recently, he's been making waves with his acquisition of a substantial stake in Howard Hughes Holdings. But even if you're not a big player, you can still follow in his footsteps by checking out his public disclosures for his fund, Pershing Square Capital.
Ackman's investment portfolio is focused and full of winning bets. Currently, his top three picks are Uber, Alphabet, and Brookfield Corp.
1. Uber (15.6%)
Uber Technologies, or UBER, is the latest addition to Ackman's portfolio. He's put his money where his mouth is with a whopping 30.3 million shares, worth approximately $2.3 billion. He's bullish on Uber not only due to its colossal network effect but also because of its vital role in the rapidly evolving autonomous vehicles industry. Uber is positioned to leverage its network of drivers and customers to provide a critical service to AV companies, ensuring high utilization rates and optimizing AV supply with human drivers when needed.
2. Alphabet (13.8%)
Ackman's first foray into Alphabet, back in early 2023, was prompted by concerns over disruptive generative artificial intelligence start-ups. However, he saw AI as a catalyst for improvement and growth in Alphabet's search product, Ads, and Google Cloud. His conviction is stronger than ever, and his shares in Alphabet are now worth about $2 billion. Google Cloud, in particular, is a valuable asset, thanks to AI, with 70% of generative AI start-up unicorns being Google Cloud customers.
3. Brookfield Corp. (13.7%)
Ackman's strategic investment in Brookfield Corp., a Toronto-issued alternative asset manager, began three consecutive quarters ago. With Pershing Square's 34.9 million shares, worth just over $2 billion, Ackman sees the potential for substantial earnings growth and free cash flow as Brookfield invests in new opportunities and returns excess cash to shareholders. Its fair value, according to management, is estimated at $176 per share by 2029, thanks to impressive distributable earnings growth.
Investors might find inspiration in Ackman's investment strategy, as he holds substantial stakes in Uber, Alphabet, and Brookfield Corp. Ackman owns around 30.3 million shares of Uber, valued at approximately $2.3 billion, indicating his bullish outlook on the ride-hailing giant's potential in the autonomous vehicles industry. His investment in Alphabet, worth about $2 billion, reflects his optimism towards AI's impact on the company's search product, ads, and Google Cloud. Ackman's strategic investment in Brookfield Corp., valued at over $2 billion, signals his belief in the company's ability to generate substantial earnings growth and free cash flow through new opportunities and increased distributable earnings. Pershing Square Capital, Ackman's fund, continues to provide insight into his investment choices through public disclosures.
