Wall Street warrior - 7 Ackman Stocks rule the world.
Learning & Growing Strategy.
As a novice investor in the US market, I am both curious and interested to know the portfolio holdings of successful investors - historical & contemporary.
Maybe, just maybe emulate them after performing my own due diligence (of course!) and gathered my thoughts.
Also share my observations, like what I did on 01 Jan 2024 (Burry's stocks pick HPP, STLA +5 more... Hits or Miss ? — click to read!).
Today, I am looking at another “young-ish” funds manager portfolio.
The person is none other than $Pershing Square Tontine Holdings(PSTH)$ founder — Bill Ackman. (see above)
Background Info.
He is an American billionaire hedge fund manager.
Founder and chief executive officer (CEO) of Pershing Square Capital Management.
His investment approach has made him an activist investor.
As of January 2024, Ackman's net worth was estimated at $4 Billion by Forbes.
He has a very checkered past when it comes to his investment strategy, manipulating the media to “pressure” stocks’ prices down etc..
The spotlight here is on his investments, not personal characters & qualities.
His Investment Strategy.
Pershing Square has $10.5 Billion invested in just 7 US stocks.
This is even more reductive than Michael Burry’s 11 US stocks.
Ladies and gentlemen, I share with you — Bill Ackman’s 7 wonders. (see below)
Bill Ackman’s 7 Wonders:
Google Inc.
$Howard Hughes Holding(HHH)$. I am very curious about this stock.
$Restaurant(QSR)$. Will this be MacDonalds’ alternative?
Lowes (LOW)$.
Canadian Pacific Kansas City (CP)$.
Sectors breakdown of the 7 stocks:
The 7 stocks could also be whittled down to 4 sectors only.
Communication services - $GOOG.
Consumer cyclical - $CMG, $QSR, $HLT, $LOW.
Real estates - $HHH.
Industrials - $CP.
As we go through selected stocks that Bill Ackman currently holds, the question we should be asking ourselves is “when it comes to investing in 2024, should they fall within above 4 sectors only” ?
Due to limited real estates, I will focus on 3 selected stocks - $HHH, $QSR and $HLT.
The others are pretty run of the mill and have been adequately covered by many already.
A diversified real estate holding company whose properties include multifamily residential, hospitality, and seaports.
It is Ackman's 3rd-biggest holding.
Ackman is also chairman of the company.
It is his longest-held stock since Q4 2010, as a result of its spinoff from General Growth Properties on 09 Nov 2010.
Post spinoff, $HHH has been up +114%, underperforming the S&P 500 index.
On 14 Nov 2023, Bill Ackman purchased additional 159,671 shares.
With the latest purchase, Pershing Square owns $1.57 Billion of $HHH; making up 14.5% of the fund's portfolio.
Looking at its past year’s performance, this real estate company is still suffering the wrath of elevated interest rates.
It bottomed on 27 Oct 2023 at $65.63 per share.
As of 30 Jan 2024 closing, its up +24.97% to $82.02 per share.
At its peak in February 2020; just before the covid pandemic onset, it was $128.50 per share.
This represents a potential upside of +56.67% (just a Math calculation!)
With the Fed expected to cut interest rates by up to -0.75% in 2024, is it time to seriously consider Howard Hughes now before it takes off?
Restaurant Brands International, makes up 14.4% of Ackman’s portfolio.
Between this investment and Chipotle, over 30% of Pershing Square's money is in restaurant stocks (sector: consumer cyclical).
RBI is the owner of (a) Burger King, (b) Tim Hortons, and (c) Popeyes Louisiana Kitchen.
Ackman singlehandedly engineered the merger that combined Tim Hortons and Burger King.
The company bought Popeyes later.
So far, RBI has underperformed the S&P 500 slightly since it started trading in 2014.
Despite RBI’s performance is below par when compared against S&P 500 performance since 2014, it was upped +17.57% for its past 12 months performances.
It bottomed on 10 Mar 2023, around the time of US banking debacle last year.
Hilton Worldwide, another consumer cyclical is No. 5 on Ackman's holdings list.
It is one of the largest hotel operators in the world.
And makes up 14.3% of the Pershing Square portfolio (just fractionally 0.01% lower than RBI).
Bill Ackman - 2023 addition of Hilton to his holdings
Ackman started buying the stock in Q4 2018 and bought nearly 1 Million more shares in Q3 2023. (see above)
Like the other consumer stocks on this list, Ackman seems to like it because it's a simple, predictable business that generates cash and has pricing power.
Hilton has outperformed the S&P 500 since end 2018, gaining +161% vs S&P's gain of 94%.
Hilton past 12 months performances was a credible +33.83%.
It bottomed in March 2023, right smack during the US banking crisis as well at $131.83 per share.
At the start of September 2023, its stock price has risen approximately by +14.54%.
My viewpoints: (mine & mine only)
Is it safe to assume that we have missed the buy-in opportunity for $HHH (Howard Hughes Holdings).
Or will $HHH rises further when the Fed begins to cut interest rate?
For QSR, I think it is at its “peak” now, even as I write.
How so? Looking at QSR’s past 5 years performances, current price is higher than its February 2020 price, just before the World Health Organization (WHO) declared COVID-19 a pandemic on 11 March 2020,
I am not really impressed by the brands under this company.
As for Hilton the brand’s equity and prestige does not quite seemed to match up to Marriot ($MAR)’s overall.
In terms of room rates, $MAR definitely commands a premium over Hilton.
As an investor with a limited budget, would you not invest it in Marriot that’s incidentally the most profitable hotel chain in the world in terms of Net Income?
Must Read: Click on below titles to access. Give a like & help to repost ok. Thanks.
Do you think it is time to start shoring up Real Estates stock / ETFs before the Fed starts cutting interest rates?
Do you think Bill Ackman portfolio of 7 US stocks is worth emulating - excluding Google Inc?
Thank you for reading my post! If you enjoyed it, help to Re-post and Like ?
Do consider “Follow me” and get firsthand read of my daily new post/s ok. Thanks.
@Wealthliner @Jiali123456 @Yewu @FireTiger68 @Klay wang @oo1 @Drake88 @Blackcurrant @Xinyun wu @Stan66
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Great ariticle, would you like to share it?
Great ariticle, would you like to share it?
Great ariticle, would you like to share it?
Great ariticle, would you like to share it?
Pls help to "Re-post". Tks! Rating is important (to me).
Would you consider "Follow me" and get first hand read of my Daily new posts? Thanks!). Tks!