Billionaire Bill Ackman Has 58% of His Hedge Fund's $13.8 Billion Portfolio Invested in Just 3 Companies

Bill Ackman's Pershing Square has significantly concentrated its portfolio, allocating 58% to its top three high-conviction holdings: Uber Technologies (20.6%), Brookfield Corp (19.7%), and Alphabet (17.9%). The hedge fund has continued to add to these positions throughout 2025, underscoring Ackman's belief in their long-term growth potential and attractive valuations. These investments reflect confidence in Uber's network effect and growth, Brookfield's robust earnings and wealth management expansion, and Alphabet's core advertising and cloud strength despite regulatory scrutiny.

Analysis

Pershing Square has pivoted to a highly concentrated portfolio, with 58% of its assets allocated to three high-conviction holdings: Uber (20.6%), Brookfield Corp (19.7%), and Alphabet (17.9%). This strategy underscores a belief in long-term growth at a fair price, as evidenced by continued accumulation in all three positions throughout 2025. For Uber, the investment thesis is driven by strong network effects, with user growth of 15% YoY to 180 million and a 35% increase in adjusted EBITDA, which is seen as mitigating the long-term threat of autonomous vehicles. The stock is viewed as fairly valued at under 24 times 2025 adjusted EBITDA expectations, even after a 57% year-to-date gain. Brookfield offers a compelling value proposition, trading at less than 20 times its 2025 distributable earnings expectations while guiding for 21% annual growth through 2029, propelled by its rapidly expanding Wealth Solutions segment where insurance assets have tripled to $135 billion in two years. Alphabet represents a contrarian play on AI dominance and valuation disparity; despite significant regulatory risk from a DOJ monopoly ruling, its core Search business grew 12% and Google Cloud sales surged 32%, with the stock trading at a discount to peers at less than 21 times forward earnings.

Key Decisions for Investors

• Given Pershing Square’s continued accumulation, investors should evaluate the growth-at-a-reasonable-price thesis for Uber, Brookfield, and Alphabet, noting the high-conviction nature of these concentrated positions.
• Investors must closely monitor the specific risks for each holding, particularly the pending regulatory remedies from the DOJ for Alphabet and Uber's execution in the autonomous vehicle space, as these are material factors for the long-term outlook.
• For those seeking value, Brookfield's valuation at less than 20 times 2025 distributable earnings appears attractive, contingent on the firm achieving its aggressive 21% annual growth target driven by its insurance business.
• Consider Alphabet as a potential contrarian opportunity, as its valuation discount relative to other 'Magnificent Seven' stocks may present an entry point for investors who believe its AI-driven growth in Search and Cloud outweighs the well-publicized regulatory overhang.