2 Stock-Split Stocks Billionaires Are Piling Into for 2026

Recent stock splits at Brookfield and Interactive Brokers Group have coincided with significant investments from prominent hedge fund managers. Brookfield, an asset and wealth manager, implemented a three-for-two split and is strategically shifting towards a capital-light insurance model, attracting Bill Ackman's Pershing Square, which now holds 19% of its portfolio in Brookfield, citing undervaluation and strong cash flow growth potential. Online brokerage Interactive Brokers Group, following a four-for-one split and robust stock performance, saw Soros Fund Management substantially increase its position, driven by strong customer account growth and diversified revenue streams across geographies and client types.

Analysis

Stock splits by Brookfield (BN) and Interactive Brokers Group (IBKR) aim to enhance retail investor accessibility and liquidity after significant share appreciation. Brookfield executed a three-for-two split on October 9, while Interactive Brokers completed a four-for-one split on June 17, concurrently increasing its dividend. These actions are generally viewed positively, distinguishing them from potentially bearish reverse splits.

Brookfield, managing over $1 trillion AUM, is strategically shifting towards a capital-light, long-duration insurance model to improve capital efficiency and ROE. This strategy has attracted Bill Ackman's Pershing Square, which built a 19% portfolio position, citing belief in 20% medium-term annual cash flow growth and a current valuation of 12 times earnings, a discount to peers. Two Sigma Advisers also increased its position by 317% in Q2.

Interactive Brokers Group has shown robust operational performance, with customer accounts growing 32% year-over-year and over 500,000 new accounts added in H1, surpassing 2023's total. Its strong international growth and diversified revenue streams across client types and geographies underpin its over 50% stock appreciation this year. Despite trading at 34 times forward earnings, H1 earnings grew 20%, with Soros Fund Management significantly increasing its position by 1,027% in Q2.

Key Decisions for Investors

• Investors should evaluate Brookfield (BN) for its strategic shift into capital-light insurance, noting its current valuation discount to peers and strong institutional conviction from Pershing Square.
• Consider Interactive Brokers Group (IBKR) for its robust customer account growth and diversified revenue streams, while carefully assessing its higher forward earnings multiple.
• Monitor the execution of Brookfield's insurance strategy and Interactive Brokers' ability to sustain its international and account growth momentum.