Bill Ackman Has 60% of His $10 Billion Portfolio in Just 3 Stocks

Investor Bill Ackman is adding billions to his billions—at least on paper—as the value of his stake in his hedge fund surges.

Bill Ackman manages hedge fund Pershing Square with nearly $11 billion in assets under management. Currently, he has about 60% of the portfolio invested in just three companies' stocks. That makes him a good case study for aspiring investors.

With that in mind, Ackman had $3.7 billion of his $10 billion portfolio in Lowe's Companies Inc. stock as of the end of 2022. He also had $2.6 billion invested in Restaurant Brands International Inc. and $2.2 billion invested in Hilton Worldwide Holdings Inc.

Ackman's investment strategy is based on the premise that he can identify companies that are undervalued by the market. He then invests heavily in those companies and holds onto them for the long term. This approach has been successful for Ackman in the past. For example, he made a $2 billion profit on his investment in Lowe's in 2020.

However, it's important to note that Ackman's investment strategy is also risky. If he makes a mistake in identifying undervalued companies, he could lose a lot of money. For example, Ackman lost $4 billion on his investment in Herbalife Nutrition Ltd. in 2018.