Hedge Fund Manager Bill Ackman Holds 56% of Portfolio in Alphabet, Brookfield, and Uber

TLDR

• Pershing Square Capital Management holds 56% of its $16.5 billion public portfolio in three stocks: Alphabet, Brookfield Corp, and Uber Technologies
• Alphabet makes up 22.6% with Google Cloud growing 34% and new Apple partnership for Gemini AI integration in Siri
• Brookfield Corp represents 17.7%, with carried interest jumping 152% to $154 million and insurance business set to triple by 2030
• Uber accounts for 15.5% with monthly active users up 17% and adjusted EBITDA growing 33% despite autonomous vehicle competition
• The concentrated approach reflects Ackman’s deep research strategy of buying undervalued companies with strong growth potential

Bill Ackman’s Pershing Square Capital Management runs a highly concentrated investment strategy. More than half of the fund’s $16.5 billion public equity portfolio sits in just three companies.

The billionaire investor focuses on deep research and large position sizes. He buys stocks when he believes markets are undervaluing their potential. This approach has delivered strong returns as his top holdings have grown since initial purchase.

Ackman’s three largest positions are Alphabet, Brookfield Corp, and Uber Technologies. Together they account for 56% of his marketable equity holdings. Each stock represents a different investment thesis around technology, asset management, and transportation.

Alphabet Leads Portfolio at 22.6% Weighting

Alphabet forms the largest position in Pershing Square’s portfolio. Ackman started buying shares two and a half years ago when he felt the market was wrong about AI risks to Google.

Alphabet Inc., GOOGL

The investment has paid off as Google Cloud revenue jumped 34% year-over-year in Q3. The company’s custom Tensor Processing Units are gaining customer adoption. These chips improve profit margins and create platform stickiness.

Google Search revenue accelerated to 15% growth in the third quarter. The company successfully integrated its Gemini AI model without hurting monetization. AI Overviews actually increased user engagement on search.

A new partnership with Apple will power Siri with Gemini technology. This deal brings billions in revenue and strengthens ties with a key search partner. The stock trades at 30 times forward earnings, reasonable given expected double-digit profit growth.

Brookfield Corp Offers Asset Management Growth

Brookfield Corp holds the second-largest position at 17.7% of the portfolio. The Canadian company operates primarily through Brookfield Asset Management. A growing insurance division adds to overall value.

Brookfield Corporation, BN

Carried interest revenue is accelerating quickly. This fee income jumped from $61 million to $154 million in the third quarter. Brookfield only recognizes this revenue after funds deliver preferred returns to investors.

Management expects $25 billion in net carried interest over the next ten years. The company collects 33% of this fee on newer funds without incurring costs. New fund launches are accelerating while older funds enter their harvest phase.

The Wealth Solutions insurance business should more than double assets within five years. Management forecasts this segment will triple earnings by 2030 with 15% returns on equity. At 24 times distributable earnings, the stock appears attractively valued for its growth.

Uber Positioned for Autonomous Vehicle Future

Uber Technologies makes up 15.5% of Ackman’s holdings. The stock has faced concerns about autonomous vehicles disrupting the ride-sharing model. Ackman sees Uber as essential infrastructure for self-driving car deployment.

The platform aggregates demand and optimizes fleet management. This helps autonomous vehicle companies maximize utilization of their cars. Even Alphabet’s Waymo partnered with Uber to launch robotaxi services in Atlanta and Austin.

Uber also works with Nvidia on AI models for smaller autonomous driving companies. Multiple partnerships with self-driving startups followed over the past year.

The core business keeps growing with monthly active users up 17% in Q3. Trip frequency per user increased 4% in the same period. Revenue growth is translating to profit expansion as adjusted EBITDA rose 33%.

The company trades at 22 times enterprise value to adjusted EBITDA. This multiple looks reasonable given growth in both traditional ride-sharing and future autonomous partnerships.

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