Quick Read – Ackman’s concentrated bet on overlooked quality names like Microsoft offers stronger long-term risk/reward than momentum-chasing investors will find chasing hot IPOs. – Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Microsoft…
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It’s been a month since Pershing Square USA (NYSE:PSUS) and Pershing Square (NYSE:PS), the new plays led by star hedge fund manager Bill Ackman, went live on the public markets. The reception has been far more positive for the latter than the former. And while it’s more exciting to own a piece of the company behind the portfolio with Pershing Square, I do think that the discount on net asset value (NAV) makes the former investment more than worth a second look, especially for investors who believe in Mr.
Ackman’s ability to generate meaningful alpha in a market environment where extreme momentum and overvaluation can co-exist with big-time bargains hiding in plain sight. With Mr. Ackman recently sharing his beliefs in an episode of the “All-In” podcast, the man shone a light on the current market behavior where investors seem to be overlooking the boring, but very high-quality companies, which also happen to be quite cheap, for the “new new” kinds of stocks.