Billionaire Ackman's hedge fund disclosed a big stake in Meta. How else has the portfolio changed?

Pershing Square, led by billionaire Bill Ackman, disclosed a new stake in IT giant Meta Platforms at one of its funds' annual meeting with investors. The fund's position in Meta at the end of 2025 was 10 percent of Pershing's capital, or about $2 billion, The Wall Street Journal calculated.

The fund began buying Meta shares in November at an average price of $625 apiece, according to an investor presentation. Since that deal, the securities have gained 11% through the end of 2025, then added another 3% in early 2026, the WSJ noted.

"We believe Ma's current share price underestimates the long-term growth potential of the company due to AI and represents a large discount to one of the greatest companies in the world," the presentation said.

At the same time, shares of the company, led by Facebook creator Mark Zuckerberg, have fallen by about 13% over the past six months. Pershing Square believes this is due to investor concerns about the company's massive investments in AI. The fund's investment idea is partly based on the idea that artificial intelligence will strengthen Meta's recommendation algorithms and personalized advertising, and open up new opportunities in wearable devices or digital AI assistants for businesses. "Meta's business model is one of the most obvious beneficiaries of AI integration," Pershing Square said in a presentation.

The fund points out that Meta is now trading at a forward P/E ratio (ratio of share price to projected annual earnings) of around 22. This is considered an inexpensive valuation given the expected earnings growth due to AI development and adoption: Alphabet (Google's holding company), Apple and Nvidia have higher ratios, CNBC noted.

Ackman typically concentrates his portfolio in a small number of stocks: as of the end of 2025, Pershing had only 13 different positions, including bets on two other tech companies, Alphabet and Amazon, the WSJ writes. That said, Amazon was another new Pershing investment along with Meta last year. The fund also bought shares in car rental chain Hertz: it called those securities an opportunistic investment.

In 2025, Pershing closed positions in restaurant chain Chipotle Mexican Grill, Canadian railroad operator Canadian Pacific Kansas City and sportswear and sneaker maker Nike, and in 2026 has already sold securities of hotel chain Hilton Worldwide. Chipotle shares negatively affected the fund's total return, reducing gross returns by 4.6%, Seeking Alpha pointed out. Nike securities lowered the result by another 2.5%. The stake in Hilton was sold in 2026.

In 2025, Pershing Square Holdings' Net Asset Value (NAV - Net Asset Value) is up 20.9% and Total Shareholder Return (TSR - Total Shareholder Return) is up 33.9%. The compound average annualized return over the past eight years is 22.6% for net assets and 23.0% for the fund's share price.

Among the best performing securities last year were Alphabet (10.3%), Fannie Mae (The Federal National Mortgage Association, 5.8%) and Freddie Mac (Federal Home Loan Mortgage Corporation, 5%).

In general, the fund has been building up stakes in high-quality, high-growth megacorporations. "We believe the megacaps we own are trading at attractive valuations relative to the rest of the market given their high quality businesses and growth prospects," the presentation said.

This article was AI-translated and verified by a human editor