Billionaire investor Bill Ackman has 100% of his $10 billion portfolio in just 9 stocks, but there have been seismic shifts over the

Bill Ackman is a celebrity in the investing world. He runs Pershing Square Capital Management, the hedge fund he founded, which manages more than $10 billion in assets. The well-known activist, who describes himself as a fundamental value investor, has made a name for himself by taking large stakes in companies and pushing executives to make changes that increase shareholder value.

One of the most notable aspects of Ackman’s investment strategy is that Pershing Square typically holds significant stakes in just eight to twelve companies and typically holds them for years. The hedge fund focuses on high-quality, large-cap North American companies with limited downside risk and predictable, recurring cash flows. This strategy has been extremely successful for Ackman, with Pershing Square generating an annualized return of 31% over the past five years, or about double the performance of the S&P 500.

Let’s look at the nine stocks that made up Pershing Square’s portfolio and the big changes Ackman made during the second quarter.

1. Hilton: 19%

Pershing has a long-standing position in Hilton Worldwide Holdings (NYSE:HLT)holding nearly 9 million shares worth nearly $1.9 billion. Ackman took his first position in the hotel chain in late 2018, adding to the position during the pandemic, confident in the travel industry’s recovery. The move was prescient and has proven to be extremely profitable.

Ackman described Hilton as a “high-quality company…led by an exceptional management team.” In the first half of 2024, Hilton’s revenue grew 11%, while adjusted earnings per share (EPS) jumped 17%. Ackman cited the company’s “excellent cost control and continued best-in-class return on capital” as reasons for his optimistic outlook. He also suggested that industry tailwinds and international growth would fuel the sequential acceleration in the third quarter.

To raise funds for new purchases (more on that later), Ackman sold about 228,000 Hilton shares, a drop of about 2%.

2. Restaurant brands: 16%

Ackman has a long history of betting on consumer spending, and his confidence in that long-term trend remains intact. Pershing Square owns more than 23 million shares of International Restaurant Brands (NYSE: QSR)for a stake worth $1.6 billion. The company’s portfolio includes a host of well-known brands, including Burger King, Popeye’s, Firehouse Subs and Tim Hortons. Ackman took his first position in the company in 2012 — when it was still private — and has been increasing his holdings during the pandemic.

Ackman points to Restaurant Brands’ “long-term growth potential, trading at a discounted valuation.” Total revenue is up 13% in the first half of 2023, as is EPS. He has previously highlighted Restaurant Brands’ franchise royalty model, which he says offers “decades” of potential growth.

The billionaire investor increased his stake slightly in the second quarter, adding 381,000 shares, an increase of about 1.6%.

3. Chipotle:…