Bill Ackman Reveals First Portfolio Details of New $5 Billion Pershing Square USA Fund

Key Points

Bill Ackman launched Pershing Square USA ((NYSE: PSUS)), a $5 billion closed‑end fund for U.S. investors, in April. The fund’s permanent capital structure enables Ackman to focus on long‑term value creation without the pressure of regular cash inflows or outflows.

Ackman recently offered a preview of the holdings that will appear in the fund’s first portfolio disclosure. As expected, there is substantial overlap with his earlier vehicle, Pershing Square Holdings ((OTC: PSHZF)). The initial report lists eight of the 12 positions acquired since the IPO seven weeks ago.

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Notable Holdings

The disclosed stakes are familiar territory for those who follow Ackman. He has repeatedly highlighted Amazon, Microsoft, and Meta as undervalued giants overlooked by the market.

These three names already constitute over a third of Pershing Square Holdings’ capital allocation. Ackman’s shift from Alphabet to Microsoft in the 13‑F filing underscored his conviction that Microsoft offers a more attractive upside under current capital constraints.

Ackman also emphasizes the effect of index inclusion on valuation. Companies that fall outside major indexes—such as Canada’s Restaurant Brands and Brookfield—often trade at a discount, providing added buying potential.

Continuing his focus on Fannie Mae and Freddie Mac, Ackman argues that lifting them from conservatorship would unlock significant value. He has long held these stocks, seeing them as capable of a tenfold return in favorable conditions.

Overall, these positions remain compelling buying opportunities, especially given the modest market moves since Pershing Square USA’s IPO.

Evaluating Pershing Square USA

For investors seeking real‑time exposure to Ackman’s strategy, Pershing Square USA offers that possibility. However, several factors merit consideration.

First, the fund imposes a 2% annual management fee—a benchmark that demands robust outperformance to justify the cost. Many active managers fall short after accounting for similar fees.

Since its IPO, Pershing Square USA’s net asset value has dipped about 5%, and it trades below NAV at a discount of roughly 16% as of June 16, reflecting liquidity risk and fee impact. This discount can amplify volatility in an already concentrated, high‑beta portfolio.

Second, the fund’s performance has lagged the broader market, although Ackman’s earlier limited partnership outsized the market over its nine‑year history.

Despite these concerns, Ackman’s long‑term, buy‑and‑hold philosophy suggests that patient investors may benefit by following the fund’s quarterly disclosures and constructing their own positions accordingly.

While the final four holdings will remain undisclosed for a few months, early indications suggest they will align with Ackman’s proven investment thesis.

Takeaway

Investors who prefer direct participation in Ackman’s active strategy should weigh the fee structure and discount risk. Alternatively, aligning with Pershing Square USA’s portfolio through timely SEC filings provides a more flexible, potentially lower‑cost approach.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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