Staff Reporter
Billionaire Bill Ackman isn’t one for diversification. His investment strategy defies the norm, as his Pershing Square Capital Management hedge fund holds just 12 stocks in total.
Remarkably, nearly one-third of Ackman’s $11.9 billion portfolio is concentrated in three standout growth stocks.
Ackman’s New Top Stock
Ackman recently revealed his new top holding: Uber Technologies (UBER). In February, he announced on X (formerly Twitter) that Pershing Square was acquiring shares of the ride-hailing giant.
By the end of Q1 2025, the fund owned 30.3 million Uber shares valued at approximately $2.21 billion, making up 18.5% of his portfolio and surpassing Brookfield Corp. as the largest holding.
In his X post, Ackman cited several reasons for investing in Uber. He noted being “a longtime customer and admirer” of the company, aligning with the investment philosophy of legendary investor Peter Lynch—buying what you know.
Ackman described Uber as “a highly profitable and cash-generative growth machine.” A significant factor in his decision was Uber’s valuation, which he viewed as a steep discount to its intrinsic value. Since his announcement, the stock has seen impressive gains.
A Two-for-One Special
An additional 14% of Pershing Square’s portfolio is invested in another tech powerhouse, but this is split between two classes of Alphabet shares: Class A (GOOGL) and Class C (GOOG).
Ackman first invested in Google’s parent company in early 2023, amid skepticism about its future following the rise of OpenAI’s ChatGPT. Many believed that generative AI posed a threat to Google Search, but Ackman saw an opportunity during Alphabet’s sell-off and built a substantial position in both stock classes.
Today, these shares comprise Pershing Square’s third-largest holding, delivering solid returns despite Alphabet’s struggles in 2025.
Interestingly, Ackman has both bought and sold Alphabet shares recently. He increased his stake in Class A shares by approximately 11.3% in Q1 while reducing his position in Class C shares by 16.2%.
Not everyone shares Ackman’s views on Uber’s valuation. The stock currently trades at about 32.6 times forward earnings, with a price-to-earnings-to-growth (PEG) ratio of 14.5.
According to AlphaSpread’s discounted cash flow (DCF) model, Uber’s intrinsic value is estimated to be around 18% below its current share price. However, SimplyWallSt suggests that Uber is undervalued by nearly 47%. Ackman likely aligns more with SimplyWallSt’s assumptions than with AlphaSpread’s calculations.
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