Pershing Square Capital Management, led by Bill Ackman (Trades, Portfolio), released its third-quarter holdings report, showing a significant growth in portfolio value. The total market value increased from $10.4 billion in the previous quarter to $12.9 billion, marking a 24% rise. This quarter, the fund added two new stocks, increased its position in three, and reduced its stake in three others, without fully exiting any positions. Notably, the top ten holdings accounted for 99.95% of the total portfolio value.
One of the significant moves was a substantial increase in shares of Brookfield (BN), a Canadian investment company. Pershing Square boosted its holdings by 377.6% to a total of 32.7 million shares, making it the top position in the portfolio, with its value rising from 2.73% to 13.36% of the total portfolio.
Pershing Square also significantly increased its stake in Nike (NKE, Financial), following an initial purchase of 3 million shares in the second quarter. The hedge fund escalated its position by 435.5% to 16.3 million shares by the third quarter. Nike, a key barometer of consumer trends, has been combating weak demand and declining sales. In September, Nike appointed Elliott Hill as the new CEO hoping to reverse the downturn. Despite disappointing results announced in late June, Nike's stock initially struggled but later gained strength, influenced by Ackman's investment and the new CEO's appointment.
Additionally, Pershing Square added 2.1 million shares of SeaGate Entertainment (SEG), a real estate company specializing in entertainment experiences, which was spun off from Howard Hughes in August.
On the reduction front, the fund decreased its holdings in Hilton Worldwide Holdings (HLT) by 17.7% to 7.4 million shares, though it remains the second-largest position in the portfolio. Pershing also trimmed its holdings in Restaurant Brands International (QSR), the parent company of Burger King, and Canadian Pacific Railway (CP) by 0.6% and a specific number of shares, respectively.
