Billionaire hedge fund manager Bill Ackman recently made headlines when he unveiled a new stake in sports apparel company Nike. This move was disclosed in a securities filing by Ackman’s Pershing Square Capital Management, revealing that they owned more than 3 million shares of Nike at the end of June, valued at approximately $229 million. Ackman’s history with Nike stock is not new, as CNBC previously reported a $100 million profit made by Pershing Square in 2018 through trading in and out of the stock over a six-month period. Along with Nike, Pershing Square also revealed a stake in Brookfield Corp., a Canadian financial company with significant real estate holdings, valued at around $285 million.
Adjustments and Trimming
Despite the new additions to their portfolio, Pershing Square made significant adjustments to their existing holdings. The hedge fund sold about 16% of its shares in Google-parent Alphabet and over 22% in Chipotle Mexican Grill. It is important to note that Pershing owns both class A and class C shares of Alphabet. These changes were reflected in the quarterly hedge fund filings with the Securities and Exchange Commission, which only show quarter-end equity positions. The filings do not include any trading that Pershing may have conducted on a specific day, such as when Chipotle’s stock experienced a 7.5% drop after CEO Brian Niccol’s departure announcement for Starbucks.
Additional Insights
It is worth mentioning that the filings do not account for any potential derivatives positions held by Pershing Square, which may not be represented in the disclosed equity positions. Furthermore, Pershing Square has reported minor adjustments to its positions since the end of June in separate filings. It is essential to differentiate Ackman’s hedge fund operations from the proposed Pershing Square USA closed-end fund, for which Ackman had considered a public offering. However, the IPO filings for that fund were ultimately withdrawn in late July.
Bill Ackman’s investment strategy, as evidenced by his recent moves in the market, reflects a combination of new investments, adjustments to existing holdings, and a cautious approach to managing risks. Despite the fluctuations in the market and changes in leadership at companies like Chipotle, Ackman’s track record and strategic decision-making continue to attract attention in the financial world. It will be interesting to see how these recent developments play out and impact Pershing Square’s performance in the coming months.