Bill Ackman Reveals Major Portfolio Shake-Up With New Stakes in Netflix, Visa, Mastercard

Billionaire investor Bill Ackman has unveiled six new holdings in a significant overhaul of his investment funds, including major stakes in Netflix, Visa, and Mastercard. Ackman acquired the shares beginning in the second quarter, which will be held across his investment vehicles, including the recently launched Pershing Square USA, listed on the New York Stock Exchange in April.

Alongside Netflix, a company Ackman previously held briefly in 2022 before selling at a loss, his funds have also invested in eye care firm Alcon, exchange operator Intercontinental Exchange, and financial data provider S&P Global. Ackman stated his belief that these companies' earnings are positioned for strong growth, which he identifies as the primary driver of investment value over time.

Shares of these companies largely saw gains on Thursday, mirroring a broader positive trend in the U.S. stock market. Netflix stock increased by 3.3%, S&P Global rose by 1.1%, with other holdings showing modest increases. Pershing Square USA shares saw a 1.7% rise following the investment disclosures and the release of second-quarter earnings on Wednesday evening.

Ackman, whose investment decisions are closely watched by professionals and his social media following, also added Microsoft to his portfolio this year. He invested after a drop in Microsoft's stock price, anticipating a rebound based on the company's investments in artificial intelligence. Microsoft has since recovered, partly due to strong performance following its latest earnings report.

These new additions represent the most substantial portfolio restructuring in years for Ackman, whose funds typically maintain a concentrated number of holdings, usually no more than a dozen. While his funds have historically performed well, they have faced recent challenges. As of July, Pershing Square USA was down 3.5% for the year, and the London-listed Pershing Square Holdings had declined by 9.2%, underperforming the S&P 500 total return index's 10% gain.

Beyond the new investments and Microsoft, Ackman's existing portfolio includes holdings such as Uber Technologies, Meta Platforms, Amazon, Fannie Mae, and Freddie Mac.

Ackman was scheduled to discuss these investments on an analyst call later on Thursday. The new holdings are expected to appear in 13F filings submitted to the Securities and Exchange Commission on Friday. These filings, required of fund managers with significant U.S. equity stakes, are closely scrutinized by investors for insights into market trends.

This year has been particularly active for Ackman. He has overseen the listing of both his hedge fund and Pershing Square USA on the New York Stock Exchange, exited a substantial position in Universal Music Group, and celebrated his 60th birthday. Historically known as a vocal activist investor, Ackman has shifted his approach over the past four years to a quieter strategy focused on value investing and collaborative interactions with management teams.