Bill Ackman's Q1 2025 Portfolio Shake-Up: Selling Nike, Buying Uber, Brookfield, and Hertz

Bill Ackman's Aggressive Portfolio Overhaul

• 💡 Bill Ackman's Pershing Square Capital executed a significant portfolio overhaul in Q1 2025, making bold, high-conviction moves.
• 📉 Major holdings were reduced or eliminated, including a 100% dump of the $1.5 billion Nike position, a nearly 45% cut in Hilton, and over 16% trimmed from Alphabet.
• 🚀 These aggressive sales were made to fund massive new positions, signaling a shift towards disruptive growth and long-term tailwinds.

Uber: The New Top Holding

• 🎯 Ackman initiated a $2.21 billion position in Uber Technologies, instantly making it the largest holding in Pershing Square's portfolio.
• 💰 Uber is now seen as a free cash flow powerhouse, generating over $8 billion annually with strong double-digit growth in earnings and revenue.
• 🚗 The investment thesis views Uber as the ultimate platform for autonomy, building a flexible network with partnerships across the autonomous vehicle spectrum.
• ✅ Uber's global footprint, 170 million monthly active users, and integration of services like groceries and last-mile delivery position it as infrastructure for urban life.

Brookfield: Global Asset Management

• 📈 Brookfield Corporation (BN) was added to the portfolio, recognized as a "quiet giant" in alternative asset management with over $1 trillion in assets.
• 🏗️ Brookfield operates a synergistic platform spanning asset management, insurance, retirement solutions, and direct ownership of real assets like renewable energy and infrastructure.
• 📊 The company aims for 15% plus annualized shareholder returns, consistently delivering over the past 30 years through its diversified and complex structure.

Hertz: A Contrarian Turnaround Bet

• 🛣️ A smaller, but notable, addition was Hertz Global Holdings (HTZ), with Ackman increasing his stake by nearly 18% in Q1 2025.
• 🛠️ Hertz is undergoing an operational turnaround, aggressively refreshing its fleet, improving depreciation per unit, and reducing direct operating expenses.
• 🚗 The company is well-positioned to benefit from rising used car resale values, which could provide a significant earnings lever.
• ✅ Ackman's bet on Hertz is a long-term thesis on operational transformation and value creation, anticipating a potential recovery if revenues stabilize.

Ackman's Investment Philosophy

• 🧠 These moves represent a masterclass in conviction investing, focusing on innovation, resilience, and transformation for the next decade.
• 🔍 Ackman's strategy involves bold, high-conviction bets on companies poised for significant future growth and value creation.