Bill Ackman and his investment firm Pershing Square Capital Management have executed a significant tactical shift in their equity holdings, signaling a renewed confidence in big tech and a contrarian play on the travel recovery sector. According to the latest regulatory filings, the billionaire investor has established substantial new positions in Meta Platforms and Amazon while simultaneously taking a major stake in the rental car giant Hertz Global Holdings. These moves represent a departure from some of the firm’s long-standing consumer and hospitality favorites.
The decision to pivot toward Meta and Amazon suggests that Pershing Square is looking to capitalize on the continued dominance of the cloud and digital advertising markets. Meta has seen a remarkable turnaround over the last year as it streamlined operations and doubled down on artificial intelligence, while Amazon remains a titan in both retail and web services. By adding these names, Ackman is aligning his portfolio with companies that possess deep moats and significant pricing power in an era of fluctuating interest rates.
Perhaps the most surprising addition to the roster is Hertz. The rental car industry has faced a volatile landscape since the pandemic, dealing with fluctuating fleet costs and the complex transition to electric vehicles. However, Ackman has a long history of identifying undervalued companies with strong brand recognition and the potential for operational improvement. His investment in Hertz reflects a belief that the company is well-positioned to benefit from sustained travel demand despite recent headwinds in the broader automotive market.
To make room for these aggressive new entries, Pershing Square has completely exited its positions in Hilton Worldwide and Nike. The sale of Hilton marks the end of a highly successful chapter for the firm. Ackman has frequently praised Hilton’s asset-light business model and its resilience during the global pandemic, but the exit suggests the investor believes the stock may have reached its full valuation for the current cycle. The departure from Nike is equally noteworthy, as the sportswear giant has been grappling with intensifying competition and a strategic shift in its direct-to-consumer sales model.
Market analysts suggest that these divestments indicate a shift in strategy away from traditional consumer discretionary plays toward high-growth technology and specialized industrial services. By exiting Nike, Pershing Square avoids the ongoing uncertainty surrounding global retail trends and supply chain shifts that have weighed on the footwear industry. Instead, the firm appears to be concentrating its capital into fewer, higher-conviction bets where it sees a clearer path to outsized returns over the next several quarters.
This portfolio reshuffling comes at a time when hedge fund managers are navigating a complex macroeconomic environment defined by persistent inflation and shifting consumer behavior. Ackman’s willingness to rotate out of established winners like Hilton to fund new ventures in the tech sector demonstrates the active management style that has defined his career. Investors will be watching closely to see if his bet on the rental car sector pays off as effectively as his previous ventures into the restaurant and hospitality industries.
Ultimately, the latest filings from Pershing Square reveal a manager who is not afraid to walk away from success to chase new opportunities. With heavy stakes now placed on the future of digital infrastructure and the recovery of the travel services market, the firm is betting that its new core holdings will drive the next phase of its growth. As the market processes these changes, the focus will remain on how these new positions perform against the backdrop of a rapidly changing global economy.
