Key Developments in Hedge Fund Investments
Billionaire hedge fund manager Bill Ackman, through his firm Pershing Square Capital Management, has acquired a 46.9% stake in Howard Hughes Holdings, aiming to transform it into a “modern-day Berkshire Hathaway.” This initiative is part of his broader strategy to invest in high-quality companies.
In the second quarter of 2023, Ackman also took a stake in Amazon, with expected earnings growth of 10% annually through 2026, and in Uber Technologies, believing it to be “one of the best managed and highest quality businesses in the world.” Uber’s revenues are projected to increase at 26% annually in the next three to five years, supported by its leadership in ride-sharing and food delivery markets.
Year-to-date, Uber’s stock has appreciated significantly, now valued at 16 times earnings, while Amazon shares have surged 160% since January 2023. Ackman’s hedge fund has outperformed the S&P 500 by 28 percentage points over the past five years.
