Bill Ackman - Perishing Square Capital Management Portfolio

Bill Ackman - Perishing Square Capital Management Q1 2024 Portfolio

Perishing Square Capital Management, a hedge fund managed by Bill Ackman, disclosed 8 security holdings in their SEC 13F filing for the first quarter of 2024, with a total portfolio value of $10,761,093,000


As of Q1 2024, Bill Ackman’s Pershing Square Capital Management portfolio showcases strategic investments across various industries, reflecting his confident bets on high-growth potential companies. Here is a detailed overview of the top holdings:


CMG – Chipotle Mexican Grill Inc.

  • Portfolio Allocation: 20.1%
  • Recent Activity: Reduced 9.82%
  • Shares Held: 743,984
  • Reported Price: $2906.77 per share
  • Value at Reported Price: $2,162,590,000

Chipotle Mexican Grill remains the largest holding in Ackman’s portfolio, even after a reduction of nearly 10%. This investment indicates a strong belief in Chipotle’s business model and its potential for continued growth and market dominance in the fast-casual dining sector. The reduction might suggest profit-taking or portfoxlio rebalancing while maintaining a significant position.


HLT – Hilton Worldwide Holdings

  • Portfolio Allocation: 18.2%
  • Recent Activity: No change
  • Shares Held: 9,181,180
  • Reported Price: $213.31 per share
  • Value at Reported Price: $1,958,438,000

Hilton Worldwide Holdings is a key investment for Ackman, reflecting confidence in the hospitality sector. Hilton’s strong brand recognition, extensive global presence, and recovery potential in the post-pandemic travel boom make it a compelling investment.


QSR – Restaurant Brands International

  • Portfolio Allocation: 17.24%
  • Recent Activity: No change
  • Shares Held: 23,348,135
  • Reported Price: $79.45 per share
  • Value at Reported Price: $1,855,009,000

Restaurant Brands International, the parent company of well-known brands like Burger King, Tim Hortons, and Popeyes, represents a significant portion of the portfolio. Ackman’s investment suggests confidence in the company’s ability to innovate and expand its global footprint.


GOOG – Alphabet Inc. CL C

  • Portfolio Allocation: 13.27%
  • Recent Activity: No change
  • Shares Held: 9,377,195
  • Reported Price: $152.26 per share
  • Value at Reported Price: $1,427,772,000

Alphabet’s inclusion reflects a bet on the continued dominance and innovation of Google in the tech sector. The company’s strong position in digital advertising, cloud computing, and emerging technologies makes it a staple in Ackman’s portfolio.


HHH – Howard Hughes Holdings Inc.

  • Portfolio Allocation: 12.72%
  • Recent Activity: No change
  • Shares Held: 18,852,064
  • Reported Price: $72.62 per share
  • Value at Reported Price: $1,369,037,000

Howard Hughes Holdings represents Ackman’s investment in real estate development and management. The company’s focus on large-scale, mixed-use properties in major metropolitan areas aligns with Ackman’s strategy of investing in unique assets with significant growth potential.


CP – Canadian Pacific Kansas City

  • Portfolio Allocation: 12.37%
  • Recent Activity: No change
  • Shares Held: 15,095,528
  • Reported Price: $88.17 per share
  • Value at Reported Price: $1,330,973,000

Canadian Pacific Kansas City is a significant holding, reflecting confidence in the transportation and logistics sector. The company’s extensive rail network and strategic mergers and acquisitions enhance its growth prospects.

GOOGL – Alphabet Inc.

  • Portfolio Allocation: 6.11%
  • Recent Activity: No change
  • Shares Held: 4,354,824
  • Reported Price: $150.93 per share
  • Value at Reported Price: $657,274,000

This additional stake in Alphabet’s Class A shares further underscores Ackman’s bullish outlook on the tech giant’s future.


Overall, Bill Ackman’s Q1 2024 portfolio demonstrates a balanced approach, with significant investments in technology, hospitality, real estate, and consumer brands. His strategic choices reflect a combination of long-term growth potential and robust market positions.


Bill Ackman - Perishing Square Capital Management Q4 2023 Portfolio

Perishing Square Capital Management, a hedge fund managed by Bill Ackman, disclosed 8 security holdings in their SEC 13F filing for the fourth quarter of 2023, with a total portfolio value of $10,494,117,169


Portfolio Overview:

As of 31 December, 2023, Ackman‘s holdings were:

CMG – Chipotle Mexican Grill Inc.

  • Portfolio Allocation: Largest holding at 18.15%.
  • Recent Activity: Reduced holdings by 13.49%.
  • Shares Held: 824,998.
  • Reported Price: $2,286.96 per share.
  • Value at Reported Price: Approximately $1.887 billion.

Chipotle’s strong brand, emphasis on quality ingredients, and innovative fast-casual dining model align with Ackman’s preference for investing in high-quality businesses with long-term growth potential. The reduction might be a profit-taking measure given the substantial appreciation in value.


QSR – Restaurant Brands International

  • Portfolio Allocation: 17.55%, a significant stake.
  • Recent Activity: No recent changes reported.
  • Shares Held: 23,348,135.
  • Reported Price: $78.13 per share.
  • Value at Reported Price: About $1.824 billion.

The holding in QSR, which includes brands like Burger King and Tim Hortons, suggests a belief in the value of global franchise businesses with scalable models, consistent with Ackman’s investment strategy.


HLT – Hilton Worldwide Holdings

  • Portfolio Allocation: 16.08%.
  • Recent Activity: Reduced by 10.91%.
  • Shares Held: 9,181,180.
  • Reported Price: $182.09 per share.
  • Value at Reported Price: $1.672 billion.

Hilton’s global presence and strong brand in the hospitality industry may offer a compelling value proposition, especially as travel rebounds post-pandemic. The reduction in holdings might be due to portfolio rebalancing after a period of growth.

HHH – Howard Hughes Holdings Inc.

  • Portfolio Allocation: 15.51%.
  • Recent Activity: Increased holdings by 12.17%.
  • Shares Held: 18,852,064.
  • Reported Price: $85.55 per share.
  • Value at Reported Price: $1.613 billion.

Howard Hughes Holdings, with its real estate development and management business, fits Ackman’s interest in unique assets with long-term value creation potential. The increase in stake indicates a positive outlook on the company’s future.


GOOG – Alphabet Inc. CL C

  • Portfolio Allocation: 12.71%.
  • Recent Activity: Position remained unchanged.
  • Shares Held: 9,377,195.
  • Reported Price: $140.93 per share.
  • Value at Reported Price: $1.322 billion.

Alphabet’s dominance in online search and advertising, along with ventures in cloud computing and other technologies, may make it an attractive investment due to its growth prospects and resilient business model.

CP – Canadian Pacific Kansas City

  • Portfolio Allocation: 11.48%.
  • Recent Activity: No recent changes reported.
  • Shares Held: 15,095,528.
  • Reported Price: $79.06 per share.
  • Value at Reported Price: Nearly $1.193 billion.

The investment in Canadian Pacific reflects confidence in the rail industry’s essential role in trade and logistics. Railroads often have high barriers to entry and can provide stable, long-term returns.

GOOGL – Alphabet Inc.

  • Portfolio Allocation: 5.85%.
  • Recent Activity: Position remained unchanged.
  • Shares Held: 4,354,824.
  • Reported Price: $139.69 per share.
  • Value at Reported Price: $608 million.

Holding shares of both GOOG and GOOGL signifies a strong belief in Alphabet’s overall business strategy and its ability to continue innovating and capturing market share in various sectors.

LOW – Lowe’s Cos.

  • Portfolio Allocation: 2.67%.
  • Recent Activity: Significantly reduced by 82.37%.
  • Shares Held: 1,245,515.
  • Reported Price: $222.55 per share.
  • Value at Reported Price: $277 million.

Lowe’s, as a leading home improvement retailer, likely represented a play on the robust housing market and the trend of home renovations. The substantial reduction may reflect taking profits or reallocating capital to other opportunities perceived to have higher potential returns.


Portfolio Insights:

Ackman’s portfolio suggests a focus on well-established companies with strong market positions. The reductions in CMG and HLT could be a part of taking profits from strong performers, while the increase in HHH shares might be an example of doubling down on investments Ackman expects to appreciate. His investments in Alphabet show a belief in the long-term growth of leading technology firms, and the inclusion of CP indicates an interest in infrastructure and transport.



Bill Ackman’s Q4 2023 portfolio reflects a balance between profit-taking from successful investments and strategic additions to positions where he sees long-term value. The focus on a few high-conviction bets is typical of Ackman’s investment philosophy, which often involves deep research and a strong belief in the fundamentals of the companies he invests in.

Analyzing Chipotle Mexican Grill Inc. (CMG): Why is Bill Ackman investing in CMG ?

Analyzing Chipotle Mexican Grill, Inc. (CMG) from Bill Ackman’s investment perspective requires understanding his investment style. Ackman is known for his activist investing approach, often taking significant stakes in companies he believes are undervalued or could benefit from strategic shifts. He typically looks for companies with strong brands, solid market positions, and potential for improvement in operations and profitability.


Ackman’s investment in Chipotle Mexican Grill, Inc. (CMG) could be seen as a strategic move aligning with his reputation for selecting companies with solid fundamentals and growth potential. Here’s a breakdown of CMG’s key financial metrics and ratios that might support such an investment decision:


Market Capitalization and Growth:


CMG has experienced robust market capitalization growth, with a significant uptick in the trailing twelve months (TTM). The company’s revenue growth is also impressive, indicating a solid expansion strategy. Ackman would likely consider these factors as indicative of a strong market position and brand.


CMG’s market cap has seen a notable rise, reaching $71.25 billion, signaling strong market confidence.

The year-over-year market cap growth stands at 63.18%, highlighting rapid expansion and investor interest.

Revenue Streams:


Revenue has grown consistently, with a 14.33% increase in the TTM, indicating an upward trajectory in sales.

Profitability Margins:


CMG’s profit margins and ROIC are substantial, showcasing efficient operations and effective capital allocation. Ackman would view these as positive indicators of a company that is not only growing top-line revenue but is also translating that into bottom-line returns.


Gross Margin: CMG maintains a healthy gross margin of 26.20%, which is substantial for the restaurant industry.

Operating Margin: An operating margin of 15.78% demonstrates CMG’s ability to translate sales into profits effectively.

Profit Margin: With a net profit margin of 12.45%, the company shows strong bottom-line earnings relative to its revenue.


Valuation Ratios:


Despite a high PE ratio, which suggests the stock is not cheap, Ackman may look beyond the immediate earnings to the future growth prospects of CMG. The PEG ratio, while above 2, suggests growth expectations are factored into the stock’s price, but Ackman may still see potential if he believes in the company’s ability to exceed these expectations.


PE Ratio: At 58.60, the PE ratio is high, which may be justified by future growth expectations.

P/FCF Ratio: The price to free cash flow ratio of 58.27 suggests investors are willing to pay a premium for CMG’s cash-generating ability.

EV/EBITDA: An EV/EBITDA ratio of 38.14 reflects a higher valuation but is often typical for growth-oriented companies.


Debt Management:


The debt to equity ratio and other debt measures indicate leverage, but not excessively so, given the company’s cash flow strength. Ackman would likely analyze the cost of debt, interest coverage, and the terms of the debt to ensure there is no undue financial risk.


Debt to Equity Ratio: Standing at 1.32, it indicates a balanced approach to financing with a manageable level of debt.

Debt to EBITDA: A ratio of 2.09 shows CMG can cover its debt with earnings before interest, taxes, depreciation, and amortization. 


Operational Efficiency:


With high inventory turnover and asset turnover ratios, CMG is demonstrating efficient use of resources. Ackman may view this as an opportunity to further optimize operations, a strategy often employed by activist investors.


Asset Turnover Ratio: At 1.29, CMG efficiently uses its assets to generate revenue.

Return on Equity (ROE): A high ROE of 43.90% suggests that the company is using its equity effectively to generate profits.

Return on Assets (ROA): An ROA of 16.10% indicates that CMG is generating satisfactory earnings from its asset base.

Cash Flow and Liquidity:


CMG has a strong free cash flow, which is a crucial metric for Ackman. This financial flexibility allows for various capital allocation strategies, such as reinvestment in the business, share buybacks, or other shareholder value-enhancing initiatives.


Free Cash Flow: CMG generated $1.22 billion in free cash flow, offering financial flexibility for strategic moves.

Current Ratio: A current ratio of 1.57 shows that CMG has more than enough liquid assets to cover short-term liabilities.

Stock Performance:


The stock price increase of 60.27% over the last year reflects strong performance and positive market sentiment.

The buyback yield of 1.25% indicates CMG’s commitment to returning value to shareholders through share repurchases.


Stock Performance and Shareholder Returns:

The stock has seen a significant increase over the last year. While this might deter value investors looking for underpriced opportunities, Ackman might interpret this momentum as a sign of the market recognizing CMG’s value proposition. Additionally, the buyback yield suggests a shareholder-friendly management team.


Lack of Dividends:

CMG does not pay a dividend, which may be suitable for Ackman’s approach if he believes capital can be better used for growth or share repurchases.


Bill Ackman’s Potential Strategy:

If Ackman is investing in CMG, he might see a company that is already performing well but has the potential to do even better. He may identify operational efficiencies, propose new growth strategies, or push for more aggressive share repurchase programs. Given CMG’s strong fundamentals, Ackman could also view it as a resilient investment in an industry subject to trends and changing consumer preferences.


In summary, Ackman’s investment in Chipotle is likely be driven by the company’s strong brand, growth potential, solid financials, and opportunities for operational improvements. The high valuation metrics might be justified by the company’s expansion trajectory and consistent execution, aligning with Ackman’s philosophy of investing in quality businesses at reasonable prices.

Who is Bill Ackman ?

May 11, 1966:

  • William Albert Ackman was born in Chappaqua, New York.


  • Ackman graduates from Harvard University with a degree in economics.


  • Ackman joins Goldman Sachs as an investment banker.


  • Ackman leaves Goldman Sachs to start his own hedge fund, Gotham Partners, with $3 million in capital.


  • Gotham Partners loses 40% of its value due to a bad bet on the telecom industry.


  • Ackman launches Pershing Square Capital Management, a hedge fund management company based in New York City.


  • Ackman becomes widely known for his high-profile battle with the management of Target Corporation. He acquires a stake in the company and pushes for changes to maximize shareholder value.


  • During the financial crisis, Ackman bets against the bond insurers MBIA and Ambac, predicting their downfall. This bet ultimately proves successful, earning Ackman’s fund billions of dollars in profits.


  • Ackman takes a significant stake in J.C. Penney and becomes its largest shareholder. He attempts to implement major changes in the company’s strategy and leadership, but his efforts fail, resulting in substantial losses for his fund.


  • Ackman becomes involved in a highly publicized short-selling campaign against Herbalife, a multi-level marketing company. He accuses Herbalife of being a pyramid scheme and places a billion-dollar bet against the company’s stock.


  • Ackman exits his short position on Herbalife, admitting that the campaign was not as successful as he initially anticipated. The bet resulted in significant losses for his fund.


  • Ackman gains attention for his early warning about the severity of the COVID-19 pandemic. In a series of interviews, he expresses his concerns about the virus and calls for a nationwide shutdown.


  • Pershing Square Capital Management launches a special purpose acquisition company (SPAC) called Pershing Square Tontine Holdings (PSTH). The SPAC raises $4 billion, making it the largest-ever IPO of a SPAC at the time.


  • PSTH fails to complete a merger deal within its two-year deadline, resulting in the dissolution of the SPAC. Ackman announces plans to launch a new SPAC in the future.


  • Ackman advocates for Universal Music Group (UMG), a division of Vivendi, to go public. Pershing Square Tontine Holdings II (PSTH II), Ackman’s new SPAC, agrees to merge with UMG, valuing the music label at around $40 billion.


  • The merger between PSTH II and Universal Music Group is completed, and UMG starts trading on the Amsterdam Euronext stock exchange.

Interesting facts

Ackman is known for his activist investing approach, often taking significant stakes in companies and pushing for changes to increase shareholder value.

He has been involved in several high-profile battles with company management and has made large bets on both long and short positions.

Ackman is a prominent philanthropist. In 2016, he signed the Giving Pledge, committing to donate the majority of his wealth to charitable causes.

He is a well-known advocate for education reform and has supported various organizations focused on improving public schools.

Ackman has a background in real estate and initially worked at his father’s company before venturing into the world of finance.


Bill Ackman's Investing Principles

I’m not emotional about investments. Investing is something where you have to be purely rational and not let emotion affect your decision making – just the facts.

Bill Ackman

Investing is a business where you can look very silly for a long period of time before you are proven right.

Bill Ackman

Short-term market and economic prognostication is largely a fool’s errand, we invest according to a strategy that makes the need to rely on short-term market or economic assessments largely irrelevant.

Bill Ackman

I think most investors overdiversify because they’re lazy. They haven’t done enough research into any of their companies. If they’ve got 200 positions, do you think they know what’s going on at any one of those companies at this moment?

Bill Ackman

What the market tells you in the short term is what a certain subset of people believe. That doesn’t mean they’re right.

Bill Ackman

 We invest generally in very good companies that have lost their way. And with better management, enormous value can be created.

Bill Ackman

In the investing business you need a high degree of confidence but you also need a high degree of humbleness and you have to balance those two… Humbleness comes from mistakes.

Bill Ackman

If you can’t predict the cash flows, you don’t know what it’s worth. If you don’t know what it’s worth, you can’t invest.

Bill Ackman

If you’re investing for the long-term, you want to invest in businesses that have very little debt.

Bill Ackman

We expect to continue to concentrate the substantial majority of our capital in about 8 to 12 investments, and estimate that our typical holding period will be long-term, typically four or more years.

Bill Ackman

It’s safest to invest in businesses that aren’t controlled. Unless the controlling shareholder is someone that we trust, unless it’s someone that has a great track record for taking care of all the minority investors, it can be a risky proposition to invest in because you’re at the whim of the controlling shareholder.

Bill Ackman

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