Latest news with #PershingSquare
Yahoo
17 hours ago
- Business
- Yahoo
Billionaire Bill Ackman Wants to Be the Next Warren Buffett, and He Is Buying an AI Stock Up 855% in 10 Years (Hint: Not Nvidia)
Billionaire Bill Ackman will turn Howard Hughes Holdings into a modern-day Berkshire Hathaway in an effort to recreate Warren Buffett's success. Ackman's hedge fund Pershing Square Capital Management recently took a stake in Amazon, an artificial intelligence stock up 855% in the last decade. Amazon has three major growth opportunities in e-commerce, digital advertising, and cloud computing, and the company is using AI to boost revenue and improve margins. 10 stocks we like better than Amazon › In 1965, Warren Buffett took control of Berkshire Hathaway. He said that in hindsight it was a "doomed" textile mill "headed for extinction." But he saved the business, and laid the foundation for lasting growth, by shifting its focus to insurance. That brilliant decision created a steady inflow of investable capital in the form of insurance premiums, and Buffett used that cash to great effect over the years. Berkshire's market value has increased more than 5,500,000% since Buffett took control, for an average annual return of 20% over six decades. Buffett deserves much of the credit. He (along with the late Charlie Munger) engineered acquisitions, stock purchases, and share buybacks that ultimately turned Berkshire into a trillion-dollar business, one of only 11 in the world at this writing. While Buffett plans to step down as chief executive at Berkshire this year, billionaire Bill Ackman hopes to recreate his success with Howard Hughes Holdings. Ackman recently added another 900 million shares to his hedge fund, bringing his total ownership to 46.9%. He plans to turn Howard Hughes into a "modern-day version of Berkshire" by acquiring controlling interests in private and public companies. If Ackman succeeds, he could become the "next Warren Buffett." Here's the artificial intelligence stock he just bought. Bill Ackman ranks among the 20 most successful hedge-fund managers as measured by net gains, according to LCH Investments. And Pershing Square outperformed the S&P 500 (SNPINDEX: ^GSPC) by 24 percentage points over the last five years. Those accomplishments make Ackman an excellent source of inspiration. Importantly, he purchased three stocks during the first quarter: Hertz Global, Uber Technologies, and Brookfield Corporation. Those trades were disclosed in a Form 13F filed last month, but Pershing more recently added Amazon (NASDAQ: AMZN), an artificial intelligence (AI) stock that rocketed 855% over the last decade. Pershing's chief investment officer Ryan Israel said: "We felt that the company would be able to work through any slowdown in the cloud computing division Amazon Web Services, and we did not judge that tariffs would have a material impact on the earnings in the retail business." Interestingly, Ackman has a very concentrated portfolio that included fewer than a dozen stocks as of the first quarter. Chipmaker Nvidia was not one of those stocks. Amazon's market value exceeds $2 trillion today, but it could be much larger in a few years. The company has a strong presence in three growing industries, as detailed below: Not only does Amazon run the largest online marketplace in the U.S., but it also expects to gain market share this year. Domestic retail e-commerce sales are forecast to increase 8% annually through 2028, according to eMarketer. Amazon is the third-largest adtech company in the world and is rapidly taking share from industry leaders Google (part of Alphabet) and Meta Platforms. Retail ad spending is forecast to increase 17% annually in the U.S. through 2028, according to eMarketer. Amazon Web Services (AWS) is the largest public cloud operator, as measured by infrastructure and platform services spending. Cloud computing sales are forecast to grow at 20% annually through 2030, according to Grand View Research. Importantly, retail advertising and cloud services revenues not only are growing faster than online retail sales, but also have higher margins. That will make Amazon more profitable over time. But the company is also developing about 1,000 generative AI applications that will improve productivity and efficiency across its retail business, from front-end tasks like customer service to back-end tasks like coding. AWS is ideally positioned to monetize AI. It already operates the largest public cloud as measured by revenue and customers, but it has also introduced new products at all three layers of the computing stack. That includes custom chips for AI training and inference at the infrastructure layer, AI-model development tools like Bedrock at the platform layer, and AI applications like Amazon Q at the software layer. That three-tiered strategy is paying off. CEO Andy Jassy recently told analysts: "Our AI business has a multibillion-dollar annual revenue run rate," and "continues to grow triple-digit year-over-year percentages." Amazon shares soared 855% over the last decade as the company built strong positions in online retail, digital advertising, and cloud computing. And Wall Street is still predominantly bullish. Among the 71 analysts who follow the company, 96% rate the stock a buy, and the median target price is $235 per share, which implies 14% upside from the current share price of $205. Wall Street expects Amazon's earnings to increase at 10% annually through 2026. That makes the current price-to-earnings (P/E) ratio of 33 look somewhat expensive. But I think analysts are underestimating the company, as they have in the past -- Amazon topped the consensus earnings estimate by an average of 21% during the last six quarters. Long-term investors should feel comfortable buying a small position today. Before you buy stock in Amazon, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Amazon wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $651,049!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $828,224!* Now, it's worth noting Stock Advisor's total average return is 979% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Trevor Jennewine has positions in Amazon and Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon, Berkshire Hathaway, Brookfield, Brookfield Corporation, Howard Hughes, Meta Platforms, Nvidia, and Uber Technologies. The Motley Fool has a disclosure policy. Billionaire Bill Ackman Wants to Be the Next Warren Buffett, and He Is Buying an AI Stock Up 855% in 10 Years (Hint: Not Nvidia) was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
Billionaire Bill Ackman Has 51% of His Hedge Fund's $13.6 Billion Portfolio Invested in Just 3 Stocks
Bill Ackman's Pershing Square struck a deal to transform Howard Hughes into a diversified holding company for investments. Public filings reveal Ackman's top stock picks for his hedge fund, Pershing Square Capital. Ackman recently added to all three of these stocks, so there's still time to buy. 10 stocks we like better than Brookfield Corporation › Bill Ackman probably wouldn't mind being mentioned in the same breath as Warren Buffett. In fact, a recent deal between his Pershing Square fund and Howard Hughes Holdings (NYSE: HHH) aims to transform the real estate business into a diversified holding company much like that of Buffett's Berkshire Hathaway. Investors looking to take advantage of Ackman's investment acumen might consider buying a stake in the company. But it will take a long time for the billionaire's vision for Howard Hughes to play out. Investors who want to follow his best ideas right now can follow along with Pershing Square's quarterly filings with the Securities and Exchange Commission (SEC), which disclose all of the hedge fund's $13.6 billion equity holdings, of which more than half is in the following three stocks. Uber Technologies (NYSE: UBER) is a new addition to Pershing Square's portfolio. Ackman and his team invested roughly $2.3 billion in Uber at the start of 2025. Those shares are now worth roughly $2.6 billion, making it the biggest holding in the portfolio. Ackman believes the fears that the rise of autonomous vehicles will push down the value of Uber are misplaced. Uber benefits from a considerable network effect with more than 170 million users connecting with millions of drivers for rides and deliveries. That network is extremely valuable to autonomous vehicle companies, making Uber a natural partner. Partnering with Uber allows self-driving car companies to grow faster and increase the utilization of their vehicles, helping them maximize their revenue. To be sure, autonomous vehicle ubiquity is still a long ways away. In the meantime, Uber continues to produce strong financial results, exhibiting significant operating leverage as it scales. Earnings before interest, taxes, depreciation, and amortization (EBITDA) soared 35% last quarter on the back of a 14% increase in gross bookings. The company forecast similar growth for the second quarter as well. Uber's also showing strong growth in free cash flow, or what's left of cash flow after capital spending. It produced $2.3 billion in free cash flow last quarter, up 66% year over year. At last year's investor day, management said it aims to convert more than 90% of EBITDA into free cash flow over the next three years. Despite the strong growth outlook, Uber's stock still trades at a good value. Even after some price appreciation since Ackman's purchase, Uber trades for an enterprise value-to-EBITDA ratio of about 25. That's a great price for a company that is increasing EBITDA at about 30% per year. Brookfield (NYSE: BN) is a diversified alternative asset management company with investments across real estate, renewable energy, and infrastructure. Pershing Square first established a position in the Canadian company in 2024, and it's consistently added since. It added another 6.1 million shares in the first quarter, pushing its total investment value to about $2.4 billion today. The corporate structure of Brookfield is unique, with several publicly traded spin-offs and subsidiaries. For example, Brookfield Asset Management (NYSE: BAM) is Brookfield's core holding and the main investment arm. It owns 73% of BAM's shares while the rest is publicly traded. Other publicly traded Brookfield assets include Brookfield Infrastructure and Brookfield Renewable, which also trades as a partnership. The structure is designed to give investors flexibility and maximize the value of its assets. On top of its subsidiaries, Brookfield also includes some separate real estate holdings and an annuities business. The investments are performing well. Distributable earnings increased 27% year over year in the first quarter thanks in part to divesting a money-losing road fuels business. Management said it expects to boost cash flow at a 20%-plus annual rate through 2029 at last year's investor meeting, giving it an additional $47 billion to allocate to new investments and return to shareholders. Ackman points out that nearly all of Brookfield's market cap is accounted for by its public equity holdings. That means investors can get access to its annuity business and its private investments for an extremely low price. The shares currently trade for just 13.8 times its trailing distributable earnings. Ackman suggests a multiple of 16 should be the floor for Brookfield's value and management thinks it should be worth about 18 times distributable earnings. As such, it looks like a bargain at its current price. Howard Hughes Holdings is a real estate company specializing in master-planned communities. Ackman invested in the company in 2023, attracted to its high-quality assets amid the nation's housing shortage. As mentioned, Pershing Square recently struck a deal with Howard Hughes to acquire 9 million newly issued shares. That gives it a 47% stake in the business worth about $1.9 billion as of this writing. Howard Hughes' core holdings offer a lot of promise. Management estimates the value of its assets at $5.9 billion, which means the $4 billion stock trades for a discount. It's generating modest net operating income growth, with expectations for it to come in as much as 4% higher in 2025. Long-term, management sees net operating income climbing another 37% from 2024 levels based on existing projects. Management has historically used the free cash flow generated by its real estate business to pay down debt, invest in new projects, and repurchase shares. Ackman plans to use the cash to diversify the business. He said one of his first moves will be to add an insurance business either by building it from the ground up or via acquisition. Insurance will provide funds for investment through float -- premiums collected from policy holders before claims are paid out -- which is basically cheap capital for Ackman to invest. It's the same way Buffett transformed Berkshire Hathaway from a textile producer into a diversified holding company. The new structure of the company comes with some drawbacks. Namely, there's the $3.75 million quarterly fee paid to Pershing Square in addition to a 0.375% incentive fee for increasing the value of the business. However, it could provide investors with a way to invest directly in Ackman's best ideas. Considering the stock trades below management's conservative estimate for its net asset value, it may be worth adding for investors hoping Ackman can emulate Buffett's success. Before you buy stock in Brookfield Corporation, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Brookfield Corporation wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $651,049!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $828,224!* Now, it's worth noting Stock Advisor's total average return is 979% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Adam Levy has positions in Amazon. The Motley Fool has positions in and recommends Amazon, Berkshire Hathaway, Brookfield, Brookfield Corporation, Howard Hughes, Nike, and Uber Technologies. The Motley Fool recommends Brookfield Infrastructure Partners, Brookfield Renewable, and Brookfield Renewable Partners. The Motley Fool has a disclosure policy. Billionaire Bill Ackman Has 51% of His Hedge Fund's $13.6 Billion Portfolio Invested in Just 3 Stocks was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
2 days ago
- Business
- Globe and Mail
Billionaire Bill Ackman Has 51% of His Hedge Fund's $13.6 Billion Portfolio Invested in Just 3 Stocks
Bill Ackman probably wouldn't mind being mentioned in the same breath as Warren Buffett. In fact, a recent deal between his Pershing Square fund and Howard Hughes Holdings (NYSE: HHH) aims to transform the real estate business into a diversified holding company much like that of Buffett's Berkshire Hathaway. Investors looking to take advantage of Ackman's investment acumen might consider buying a stake in the company. But it will take a long time for the billionaire's vision for Howard Hughes to play out. Investors who want to follow his best ideas right now can follow along with Pershing Square's quarterly filings with the Securities and Exchange Commission (SEC), which disclose all of the hedge fund's $13.6 billion equity holdings, of which more than half is in the following three stocks. 1. Uber Technologies (19% of equity portfolio) Uber Technologies (NYSE: UBER) is a new addition to Pershing Square's portfolio. Ackman and his team invested roughly $2.3 billion in Uber at the start of 2025. Those shares are now worth roughly $2.6 billion, making it the biggest holding in the portfolio. Ackman believes the fears that the rise of autonomous vehicles will push down the value of Uber are misplaced. Uber benefits from a considerable network effect with more than 170 million users connecting with millions of drivers for rides and deliveries. That network is extremely valuable to autonomous vehicle companies, making Uber a natural partner. Partnering with Uber allows self-driving car companies to grow faster and increase the utilization of their vehicles, helping them maximize their revenue. To be sure, autonomous vehicle ubiquity is still a long ways away. In the meantime, Uber continues to produce strong financial results, exhibiting significant operating leverage as it scales. Earnings before interest, taxes, depreciation, and amortization (EBITDA) soared 35% last quarter on the back of a 14% increase in gross bookings. The company forecast similar growth for the second quarter as well. Uber's also showing strong growth in free cash flow, or what's left of cash flow after capital spending. It produced $2.3 billion in free cash flow last quarter, up 66% year over year. At last year's investor day, management said it aims to convert more than 90% of EBITDA into free cash flow over the next three years. Despite the strong growth outlook, Uber's stock still trades at a good value. Even after some price appreciation since Ackman's purchase, Uber trades for an enterprise value -to-EBITDA ratio of about 25. That's a great price for a company that is increasing EBITDA at about 30% per year. 2. Brookfield (17%) Brookfield (NYSE: BN) is a diversified alternative asset management company with investments across real estate, renewable energy, and infrastructure. Pershing Square first established a position in the Canadian company in 2024, and it's consistently added since. It added another 6.1 million shares in the first quarter, pushing its total investment value to about $2.4 billion today. The corporate structure of Brookfield is unique, with several publicly traded spin-offs and subsidiaries. For example, Brookfield Asset Management (NYSE: BAM) is Brookfield's core holding and the main investment arm. It owns 73% of BAM's shares while the rest is publicly traded. Other publicly traded Brookfield assets include Brookfield Infrastructure and Brookfield Renewable, which also trades as a partnership. The structure is designed to give investors flexibility and maximize the value of its assets. On top of its subsidiaries, Brookfield also includes some separate real estate holdings and an annuities business. The investments are performing well. Distributable earnings increased 27% year over year in the first quarter thanks in part to divesting a money-losing road fuels business. Management said it expects to boost cash flow at a 20%-plus annual rate through 2029 at last year's investor meeting, giving it an additional $47 billion to allocate to new investments and return to shareholders. Ackman points out that nearly all of Brookfield's market cap is accounted for by its public equity holdings. That means investors can get access to its annuity business and its private investments for an extremely low price. The shares currently trade for just 13.8 times its trailing distributable earnings. Ackman suggests a multiple of 16 should be the floor for Brookfield's value and management thinks it should be worth about 18 times distributable earnings. As such, it looks like a bargain at its current price. 3. Howard Hughes Holdings (14%) Howard Hughes Holdings is a real estate company specializing in master-planned communities. Ackman invested in the company in 2023, attracted to its high-quality assets amid the nation's housing shortage. As mentioned, Pershing Square recently struck a deal with Howard Hughes to acquire 9 million newly issued shares. That gives it a 47% stake in the business worth about $1.9 billion as of this writing. Howard Hughes' core holdings offer a lot of promise. Management estimates the value of its assets at $5.9 billion, which means the $4 billion stock trades for a discount. It's generating modest net operating income growth, with expectations for it to come in as much as 4% higher in 2025. Long-term, management sees net operating income climbing another 37% from 2024 levels based on existing projects. Management has historically used the free cash flow generated by its real estate business to pay down debt, invest in new projects, and repurchase shares. Ackman plans to use the cash to diversify the business. He said one of his first moves will be to add an insurance business either by building it from the ground up or via acquisition. Insurance will provide funds for investment through float -- premiums collected from policy holders before claims are paid out -- which is basically cheap capital for Ackman to invest. It's the same way Buffett transformed Berkshire Hathaway from a textile producer into a diversified holding company. The new structure of the company comes with some drawbacks. Namely, there's the $3.75 million quarterly fee paid to Pershing Square in addition to a 0.375% incentive fee for increasing the value of the business. However, it could provide investors with a way to invest directly in Ackman's best ideas. Considering the stock trades below management's conservative estimate for its net asset value, it may be worth adding for investors hoping Ackman can emulate Buffett's success. Should you invest $1,000 in Brookfield Corporation right now? Before you buy stock in Brookfield Corporation, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Brookfield Corporation wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $651,049!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $828,224!* Now, it's worth noting Stock Advisor 's total average return is979% — a market-crushing outperformance compared to171%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of May 19, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Adam Levy has positions in Amazon. The Motley Fool has positions in and recommends Amazon, Berkshire Hathaway, Brookfield, Brookfield Corporation, Howard Hughes, Nike, and Uber Technologies. The Motley Fool recommends Brookfield Infrastructure Partners, Brookfield Renewable, and Brookfield Renewable Partners. The Motley Fool has a disclosure policy.
Yahoo
2 days ago
- Business
- Yahoo
Billionaire Bill Ackman Has 51% of His Hedge Fund's $13.6 Billion Portfolio Invested in Just 3 Stocks
Bill Ackman's Pershing Square struck a deal to transform Howard Hughes into a diversified holding company for investments. Public filings reveal Ackman's top stock picks for his hedge fund, Pershing Square Capital. Ackman recently added to all three of these stocks, so there's still time to buy. 10 stocks we like better than Brookfield Corporation › Bill Ackman probably wouldn't mind being mentioned in the same breath as Warren Buffett. In fact, a recent deal between his Pershing Square fund and Howard Hughes Holdings (NYSE: HHH) aims to transform the real estate business into a diversified holding company much like that of Buffett's Berkshire Hathaway. Investors looking to take advantage of Ackman's investment acumen might consider buying a stake in the company. But it will take a long time for the billionaire's vision for Howard Hughes to play out. Investors who want to follow his best ideas right now can follow along with Pershing Square's quarterly filings with the Securities and Exchange Commission (SEC), which disclose all of the hedge fund's $13.6 billion equity holdings, of which more than half is in the following three stocks. Uber Technologies (NYSE: UBER) is a new addition to Pershing Square's portfolio. Ackman and his team invested roughly $2.3 billion in Uber at the start of 2025. Those shares are now worth roughly $2.6 billion, making it the biggest holding in the portfolio. Ackman believes the fears that the rise of autonomous vehicles will push down the value of Uber are misplaced. Uber benefits from a considerable network effect with more than 170 million users connecting with millions of drivers for rides and deliveries. That network is extremely valuable to autonomous vehicle companies, making Uber a natural partner. Partnering with Uber allows self-driving car companies to grow faster and increase the utilization of their vehicles, helping them maximize their revenue. To be sure, autonomous vehicle ubiquity is still a long ways away. In the meantime, Uber continues to produce strong financial results, exhibiting significant operating leverage as it scales. Earnings before interest, taxes, depreciation, and amortization (EBITDA) soared 35% last quarter on the back of a 14% increase in gross bookings. The company forecast similar growth for the second quarter as well. Uber's also showing strong growth in free cash flow, or what's left of cash flow after capital spending. It produced $2.3 billion in free cash flow last quarter, up 66% year over year. At last year's investor day, management said it aims to convert more than 90% of EBITDA into free cash flow over the next three years. Despite the strong growth outlook, Uber's stock still trades at a good value. Even after some price appreciation since Ackman's purchase, Uber trades for an enterprise value-to-EBITDA ratio of about 25. That's a great price for a company that is increasing EBITDA at about 30% per year. Brookfield (NYSE: BN) is a diversified alternative asset management company with investments across real estate, renewable energy, and infrastructure. Pershing Square first established a position in the Canadian company in 2024, and it's consistently added since. It added another 6.1 million shares in the first quarter, pushing its total investment value to about $2.4 billion today. The corporate structure of Brookfield is unique, with several publicly traded spin-offs and subsidiaries. For example, Brookfield Asset Management (NYSE: BAM) is Brookfield's core holding and the main investment arm. It owns 73% of BAM's shares while the rest is publicly traded. Other publicly traded Brookfield assets include Brookfield Infrastructure and Brookfield Renewable, which also trades as a partnership. The structure is designed to give investors flexibility and maximize the value of its assets. On top of its subsidiaries, Brookfield also includes some separate real estate holdings and an annuities business. The investments are performing well. Distributable earnings increased 27% year over year in the first quarter thanks in part to divesting a money-losing road fuels business. Management said it expects to boost cash flow at a 20%-plus annual rate through 2029 at last year's investor meeting, giving it an additional $47 billion to allocate to new investments and return to shareholders. Ackman points out that nearly all of Brookfield's market cap is accounted for by its public equity holdings. That means investors can get access to its annuity business and its private investments for an extremely low price. The shares currently trade for just 13.8 times its trailing distributable earnings. Ackman suggests a multiple of 16 should be the floor for Brookfield's value and management thinks it should be worth about 18 times distributable earnings. As such, it looks like a bargain at its current price. Howard Hughes Holdings is a real estate company specializing in master-planned communities. Ackman invested in the company in 2023, attracted to its high-quality assets amid the nation's housing shortage. As mentioned, Pershing Square recently struck a deal with Howard Hughes to acquire 9 million newly issued shares. That gives it a 47% stake in the business worth about $1.9 billion as of this writing. Howard Hughes' core holdings offer a lot of promise. Management estimates the value of its assets at $5.9 billion, which means the $4 billion stock trades for a discount. It's generating modest net operating income growth, with expectations for it to come in as much as 4% higher in 2025. Long-term, management sees net operating income climbing another 37% from 2024 levels based on existing projects. Management has historically used the free cash flow generated by its real estate business to pay down debt, invest in new projects, and repurchase shares. Ackman plans to use the cash to diversify the business. He said one of his first moves will be to add an insurance business either by building it from the ground up or via acquisition. Insurance will provide funds for investment through float -- premiums collected from policy holders before claims are paid out -- which is basically cheap capital for Ackman to invest. It's the same way Buffett transformed Berkshire Hathaway from a textile producer into a diversified holding company. The new structure of the company comes with some drawbacks. Namely, there's the $3.75 million quarterly fee paid to Pershing Square in addition to a 0.375% incentive fee for increasing the value of the business. However, it could provide investors with a way to invest directly in Ackman's best ideas. Considering the stock trades below management's conservative estimate for its net asset value, it may be worth adding for investors hoping Ackman can emulate Buffett's success. Before you buy stock in Brookfield Corporation, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Brookfield Corporation wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $651,049!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $828,224!* Now, it's worth noting Stock Advisor's total average return is 979% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Adam Levy has positions in Amazon. The Motley Fool has positions in and recommends Amazon, Berkshire Hathaway, Brookfield, Brookfield Corporation, Howard Hughes, Nike, and Uber Technologies. The Motley Fool recommends Brookfield Infrastructure Partners, Brookfield Renewable, and Brookfield Renewable Partners. The Motley Fool has a disclosure policy. Billionaire Bill Ackman Has 51% of His Hedge Fund's $13.6 Billion Portfolio Invested in Just 3 Stocks was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
2 days ago
- Business
- Globe and Mail
New ETF Will Track Bill Ackman's Investments
A new exchange-traded fund (ETF) will track the investments of hedge fund manager Bill Ackman. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Ackman runs the Pershing Square (PSH) hedge fund and has a strong and loyal following among individual retail investors. He currently has 1.7 million followers on social media platform X. This year, Ackman is off to a strong start thanks to a winning investment he made in mortgage concern the Federal National Mortgage Association (FNMA), commonly known as Fannie Mae. Now, asset manager Tidal Trust has filed to launch an ETF that will be based on the concentrated portfolio of Ackman. Called the 'Vista Shares Pershing Square Select ETF,' this is the latest investment vehicle from Tidal Trust that tracks the holdings of notable investors such as Stanley Druckenmiller, Michael Burry, and Warren Buffett. Major Holdings Ackman's Pershing Square Holdings stock is up 2% this year versus a total return of 1% for the benchmark S&P 500 index. In recent months, Ackman's fund has gotten a lift from its investments in Fannie Mae and also the Federal Home Loan Mortgage (FMCC). Ackman currently owns 220 million shares of the two mortgage agencies, a stake worth about $2 billion. Also this year, Ackman has gotten approval for Pershing Square to buy $900 million of Howard Hughes Holdings (HHH) stock and turn the real estate company into a diversified holding company, which he has called a 'mini Berkshire Hathaway (BRK.B).' Other major stock holdings of Bill Ackman include Uber Technologies (UBER), Hertz Global (HTZ), Chipotle Mexican Grill (CMG), and Amazon (AMZN). Is PSH Stock a Buy? three-month performance. As one can see in the chart below, PSH stock has declined 6% in London trading over the past three months.
