Here’s What Investing $1,000 in Billionaire Bill Ackman’s Portfolio Could Have Made You This Year

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Billionaire Bill Ackman is making headlines after reports that the much-hyped IPO of his investment fund Pershing Square USA is eyeing to raise just about $2 billion, significantly lower than the initial plans of $25 billion. Regardless of how this IPO performs, Ackman remains one of the most successful value investors of all time, worth over $9 billion. However, Ackman’s fund Pershing Square has been posting lackluster returns as the broader market continues to buy high-growth tech stocks and value investing takes a back seat. As of the end of June, Pershing Square Holdings was up about 5.7% this year, compared with 15% gains for the S&P 500.

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Ackman’s investing philosophy is simple: buy stocks trading at highly discounted valuations with strong underlying businesses and cash flows and hold them for years. The billionaire’s portfolio is highly concentrated (just seven stocks).

As megacap tech stocks begin to see signs of correction, the broader market is looking beyond tech and moving toward value stocks again. Amid these changing dynamics, let’s see what a $1,000 investment in Ackman’s portfolio would have returned this year.

But before calculating how much you’d have made investing $1000 in Ackman’s portfolio, let’s see the holdings of Ackman’s fund, Pershing Square.

Chipotle Mexican Grill

Stock Performance in 2024: +17%

Chipotle Mexican Grill, Inc. (NYSE:CMG) is Bill Ackman’s biggest holding as of the end of the March quarter. The billionaire’s fund, Pershing Square, has a stake of over $2.16 billion in the company. As of July 30, Chipotle shares were up about 17% in 2024.

Hilton Hotels Corporation

Stock Performance in 2024: +21.46%

Pershing Square owns a $1.96 billion stake in Hilton Hotels Corporation Common Stock (NYSE:HLT) as of the three-month period ending March. It’s another profitable investment of billionaire Ackman as the stock is up about 21.5% this year.

Restaurant Brands

Stock Performance in 2024: -11%

Restaurant Brands International Inc. (NYSE:QSR) has disappointed billionaire Ackman this year, as the stock is down about 11%. Pershing Square has a $1.76 billion stake in the company that owns Burger King and Tim Hortons.

Alphabet Class C

Stock Performance in 2024: +23%

Bill Ackman owns about 9.4 million Alphabet Inc. Class C (NASDAQ:GOOG) shares through his fund Pershing Square as of the end of March. GOOG is up about 23% so far this year.

Canadian Pacific Kansas City

Stock Performance in 2024: +4%

Canadian railway company Canadian Pacific Kansas City Ltd (NYSE:CP) is an important stock in Pershing Square’s portfolio. The fund has a $1.33 billion stake in the company. CP shares are up about 4% this year.

Howard Hughes Holdings 

Stock Performance in 2024: -13%

Real estate company Howard Hughes Holdings Inc. (NYSE:HHH) is one of the losers in billionaire Bill Ackman’s portfolio this year, down 13% so far. Pershing Square’s stake in the company is valued at about $1.33 billion.

Alphabet Inc. Class A

Stock Performance in 2024: +23%

According to filings with the SEC, Bill Ackman owns about 4.4 million Alphabet Inc. Class A (NASDAQ:GOOGL) shares through Pershing Square. The net worth of these shares is over $657 million. The stock is up about 23% this year.

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How Much Would You Have Made If You Invested $1,000 in Billionaire Ackman’s Portfolio At The Start of 2024?

We assume an equal-weighted distribution of $1,000 in Ackman’s portfolio, which means each of the seven stocks gets an investment of roughly $143.

Investment in each stock = $1,000/7 = $142.857

First, we will calculate dollar gains (and losses) on each investment. We will use this formula:

Gain or Loss = Investment per Stock x Performance Percentage ​

Dollar gains from CMG: $24.30

Dollar gains from HLT: $30.14

Dollar gains from QSR: -$15.73

Dollar gains from GOOG: $32.89

Dollar gains from CP: $5.72

Dollar gains from HHH: -$18.59

Dollar gains from GOOGL: $32.89

Adding all these gains (and losses), the total gains on our $1,000 investment this year would be roughly $92. If you had invested $1,000 in Bill Ackman’s portfolio at the start of this year, your investment would have increased to around $1092.

There Are Better Options Than Investing Like Ackman

The stock market isn’t the only option for today’s investors. The current high-interest-rate environment has created an incredible opportunity to earn massive yields. Certain private market real estate investments are giving retail investors the opportunity to capitalize on these high-yield opportunities and Benzinga has identified some of the most attractive options for you to consider.

For example, this Jeff Bezos-backed investment platform just launched its Private Credit Fund, which provides access to a pool of short-term loans backed by residential real estate with a target 7% to 9% net annual yield paid to investors monthly. The best part? Unlike other private credit funds, this one has a minimum investment of only $100. 

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