Ackman’s Pershing Touts Value Investing Amid Bid to Stir Demand for Funds

Bill Ackman's investment firm Pershing Square has made significant changes in its recent portfolio. In the second quarter, Pershing Square announced the addition of six new holdings, including Netflix, Mastercard, Visa, Alcon, Intercontinental, and S&P Global. Ackman, known for his outspoken social media presence, highlighted these investments in a shareholder letter, emphasizing their value and long-term growth potential.

Ackman, a seasoned value investor, refuted concerns about AI and stablecoin disruptions, arguing that companies like Visa and Mastercard are among the highest-quality businesses in the world. Netflix, he noted, has effectively won the streaming wars, while Alcon, the world's largest standalone ophthalmology company, is poised for consistent growth due to aging population demographics.

However, Pershing Square USA, the firm's fund, has faced challenges. After raising $5 billion in an April IPO, it has underperformed and currently trades at a 22% discount to its portfolio value. Ackman admitted this is Pershing's biggest challenge, noting it is one of the widest discounts among US closed-end funds. In response, Pershing plans to launch an active marketing program for Pershing USA, acknowledging the need to generate better demand for their funds.