Bill Ackman, known as the modern world Warren Buffett manages a fund called Pershing Square Capital Management. Currently, he manages a $10 billion stock portfolio in his fund.
Over the past 10 years, Ackman has gained a 174% return from his fund. He now holds only 8 stocks under his fund. Unlike many other hedge fund managers Ackman likes to keep a small number of stocks.
1. Chipotle Mexican Grill Inc. – CMG
- Chipotle Mexican Grill Inc. is an international chain of fast-casual restaurants. Chipotle has currently 3200 restaurants all over the world.
- From 2020 to 2023 they have grown their revenue from $5.9 billion to $9.8 billion net income has increased from $355 million to $1,200 million almost 3.4 times. But the problem is CMG’s share trade at 62 multiples. That means in this year’s (2023) net income level you would take 62 years to cover your initial investment. They don’t pay a dividend. As small investors, we should expect a dividend from stocks.
- His CMG portion is $1.88 billion in his fund & weighted around 19%.
2. Restaurant Brands International – QSR
- Restaurant Brands International is a Canadian-American fast-food company & 5th largest fast-food operator in the world.
- From 2020 to 2023 they have increased their revenue from $5 billion to $7 billion & Net Income has increased from $486 million to $1,190.
- QSR share trade currently at 21 PE multiples & pays a 3% dividend yield. 18% of Bill Ackman’s portfolio is in QSR.
3. Hilton Worldwide Holdings Inc. – HLT
- Hilton Worldwide Holdings is an American multinational hospitality company that manages hotels, resorts & properties all over the world.
- Revenue has grown from $4.3 billion to $10.2 billion from 2020 to 2024. Net Income has grown from -$715 million to $1,141 from 2020 to 2024. HLT currently trades around $200 & PE ratio is 47.
- Pershing Square Capital Management holds 9 million HLT shares worth $1.67 billion 17% weight of the fund.
4. Howard Hughes Holdings Inc. – HHH
- Howard Hughes Corporation is a real estate management & development company based in Texas.
- When it comes to net income Howard Hughes Holdings shows a loss. From 2020 to 2023 they showed loss 3 times & 2 consistent years in 2022 & 2023.
- Howard Hughes Corporation is worth 16% of his fund right now.
5. Alphabet Inc. – GOOG
- You all know Alphabet is the mother company of Google. Google share currently trade at 25 PE multiples & Bill Ackman’s fund has $1.3 billion worth of shares.
