Billionaire Bill Ackman Has 58% of His Hedge Fund's $13.8 Billion Portfolio Invested in Just 3 Companies

Core Insights - Bill Ackman has made significant moves in his Pershing Square Capital Management portfolio, with approximately 58% of the portfolio concentrated in three companies [2][4][9]. Company Summaries Uber Technologies (20.6%) - Ackman invested heavily in Uber, acquiring 30.3 million shares, making it the largest position in the portfolio [4]. - Uber's user base reached 180 million, a 15% year-over-year increase, with a 2% rise in trips per user [5]. - The company reported a 35% year-over-year growth in adjusted EBITDA, driven by a 20% increase in delivery gross bookings [5]. - Uber's stock is currently valued at about 1.2 times its gross bookings, with expectations for high teen growth, indicating it is fairly valued [8]. - The company is strategically positioned in the autonomous vehicle industry, having partnered with 20 companies, including Waymo [6][7]. Brookfield Corporation (19.7%) - Ackman has gradually built a position in Brookfield Corporation over the last five quarters, making it the second-largest holding [9]. - The company reported a 13% increase in distributable earnings per share last quarter and anticipates 21% annual growth from 2024 to 2029 [10]. - Brookfield's Wealth Solutions segment has seen rapid growth, with insurance assets increasing from $45 billion to $135 billion in two years, projected to exceed $300 billion by 2029 [10][11]. - The company is utilizing free cash flow for share buybacks and new investments, enhancing its earnings potential [12]. Alphabet Inc. (17.9%) - Ackman initially purchased shares of Alphabet in early 2023, viewing the market's reaction to generative AI as an overreaction [13]. - Alphabet's core advertising business grew by 10% year-over-year, with Google Search increasing by 12% [14]. - The Google Cloud segment experienced a 32% year-over-year sales increase, contributing significantly to overall operating earnings [15]. - Alphabet faces regulatory challenges, with the Department of Justice ruling it operates an illegal monopoly, which could impact its business model [16]. - The stock trades at less than 21 times forward earnings expectations, the lowest among the "Magnificent Seven" stocks, presenting a compelling investment opportunity [17].