Bill Ackman's Pershing Square Has Delivered a 15.9% Annualized Return Since 2004, Beating the S&P 500 by Over 5 Points a Year. Can It Continue?
Ackman dumped Alphabet and doubled down on three megacap tech winners. Here's what has to go right for the outperformance to continue.
Overview
Through the end of 2025, Bill Ackman's Pershing Square compounded at a 15.9% annualized return since 2004, comfortably ahead of the S&P 500's 10.7% gomparable gain. His strategy is straightforward: Concentrate on buying stocks of high-quality businesses with dependable cash flows and with low risk of permanent capital loss.
Lately, Ackman has been leaning into megacap tech. Over the last year, Pershing Square Capital Management has almost entirely exited its stake in Alphabet (Google) and started new positions in three other "Magnificent Seven" names: Meta Platforms (NASDAQ: META), Amazon (NASDAQ: AMZN), and Microsoft (NASDAQ: MSFT). Ackman's firm also continues to hold a core stake in Uber Technologies (NYSE: UBER).
Details
Together, those four stocks comprised the majority of Pershing Square's $13.7 billion portfolio in its first-quarter 13F filing. Given their growth potential, the portfolio looks capable of delivering market-beating returns in the coming years, though not without some important caveats.
Source
Originally published at www.fool.com.