Pershing Square’s concentrated holdings, led by MSFT, have beaten the broad market despite early-year underperformance.
Bill Ackman’s hedge fund Pershing Square Capital Management has outperformed the S&P 500 in 2024, driven by just seven stocks comprising 98% of its portfolio. The fund, which lagged earlier in the year, has rebounded strongly amid a marketwide rally.
Since its 2004 launch, Pershing Square has delivered uneven but market-beating returns. Its flagship fund, Pershing Square Holdings, has historically relied on high-conviction bets, with Microsoft (MSFT) currently its top holding. Ackman recently called MSFT’s valuation “compelling” after a pullback from last August’s peak.
The portfolio’s concentrated structure contrasts with broader market trends favoring diversification. While not all picks may suit retail investors, the fund’s recent performance highlights the potential of focused strategies.