Bill Ackman, born on May 11, 1966, stands as a prominent figure in the realm of American finance, renowned for his multifaceted roles as an investor, hedge fund manager, and philanthropist.
Ackman was born to a family where his father served as a mortgage financier and his mother held a prestigious position in New York. His academic pursuits led him to Harvard University, where he excelled, graduating magna cum laude with a Bachelor of Arts in 1988, followed by further studies at Harvard Business School for his MBA.
Embarking on his professional career, Ackman established Pershing Square Capital Management, positioning himself as its CEO. He achieved widespread recognition for his investment approach, characterized by substantial stakes in companies and assertive calls for organizational reform.
Pershing Square Holdings, Ltd., operating under the laws of Guernsey, stands as a cornerstone in the investment realm, meticulously managed by Bill Ackman’s Pershing Square Capital Management. Ackman’s adept oversight has propelled the firm’s assets to soar into the billions, solidifying its stature as a leading investment vehicle. In a strategic move to broaden its investor base, Pershing Square recently unveiled a new fund tailored to entice retail investors across the United States, marking a pivotal step in its growth trajectory.
While initial plans to list its hedge fund publicly in the U.S. were shelved, Pershing Square Holdings remains unwavering in its commitment to navigating the intricate investment landscape, ensuring its enduring influence. With forward-thinking strategies, Pershing Square Holdings continues to shape the future of finance, offering unparalleled opportunities for investors worldwide.
Here are three stocks in the Pershing Square Capital Management portfolio.
Chipotle Mexican Grill (CMG)
Ackman’s interest in Chipotle dates back to at least 2016 when Pershing Square first invested in the company. Chipotle has remained a significant holding in Pershing Square’s portfolio, representing a substantial portion of their assets. While there have been instances of Pershing Square reducing its stake in Chipotle, as reported in 2020, the fast-casual restaurant chain continues to be one of their key investments. Currently, Chipotle Mexican Grill holds a significant position in Pershing Square’s portfolio, valued at approximately $2.27 billion, making it their largest holding at 23.68% of their stock portfolio.
Price to Book Ratio: 7.66
PEG Ratio: 2.69
PE Ratio: 62.16
Price to Sales Ratio: 6.40
Forward PE Ratio: 42.57
Alphabet Inc: (GOOG) (GOOG)
In the third quarter of 2023, Pershing Square nearly doubled its ownership of Alphabet’s Class A shares. As of the end of 2023, Alphabet’s Class A and Class C shares combined constituted 18.5% of Pershing Square’s portfolio assets. Ackman’s investment in Alphabet aligns with his strategy, as he has made significant gains, with estimates suggesting profits of approximately $370 million from his Alphabet investment.
Price to Book Ratio: 6.25
PEG Ratio: 1.27
PE Ratio: 24.49
Price to Sales Ratio: 5.75
Forward PE Ratio: 18.11
Universal Music Group N.V. (UNVGY)
His interest in Universal Music Group dates back to at least 2021 when Pershing Square acquired 7.1% of Universal Music from Vivendi for $2.8 billion, with an option to buy an additional 2.9%. Ackman’s bullish stance on Universal Music Group continued, as evidenced by Pershing Square’s ownership of 105,325,592 shares in Universal Music Group N.V. by the end of 2022. Additionally, Ackman’s involvement in Universal Music Group extends to his nomination as a director on the board of the company. Ackman’s optimism about Universal Music Group’s prospects is underscored by Pershing Square’s continued bullish stance on the company, considering its stock to be trading at a discount to its intrinsic value. The stock trades Over-the-Counter in the U.S.
Trailing P/E: 42.69
Forward P/E: 27.86
PEG Ratio: 2.66
Price/Sales: 4.62
Price/Book: 19.45
Ackman’s endeavors extend beyond financial markets, with his philanthropic endeavors garnering significant attention, showcasing his commitment to various causes and charitable organizations. As a testament to his financial acumen, Ackman’s net worth is currently estimated at a staggering $3.4 billion.
Disclosure: Author had no positions in any of the above at the time the article was written.
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