Pershing Square Capital Management is a concentrated investment firm founded in 2004 by billionaire investor Bill Ackman. Structured as a closed-ended fund, Pershing Square takes significant but typically non-controlling positions in a small number of large-cap companies. Ackman employs an activist approach, advocating for operational and strategic changes to unlock shareholder value. The firm aims to maximize long-term compound annual growth in intrinsic value per share through high-conviction positions.
New positions: In Q4 2024, Pershing Square initiated a new position in Hertz Global Holdings, Inc. (HTZ), acquiring 12,713,963 shares valued at approximately $46.5 million.
Bought: The firm significantly increased its stake in Seaport Entertainment Group Inc. (SEG) by 2,929,107 shares (+144.47% return), while also adding to its positions in NIKE, Inc. (NKE) (+2,488,608 shares) and Brookfield Corporation (BN) (+2,157,181 shares with a 15.21% return).
Sold: Pershing Square reduced its holdings in Chipotle Mexican Grill, Inc. (CMG) by 4,161,632 shares (-10.46% return) and trimmed its position in Hilton Worldwide Holdings Inc. (HLT) by 1,929,622 shares (-20.85% return).
Wikipedia: en.wikipedia.org/wiki/Pershing_Square_Capital_Management
| Ticker | Company | Weight | Shares | Value | Q4 Return |
|---|---|---|---|---|---|
| BN | Brookfield Corporation | 15.8% | ▲ Added | $2,004,606,527 | + 15.21% |
| QSR | Restaurant Brands International Inc. | 11.8% | $1,499,199,575 | - 9.62% | |
| CMG | Chipotle Mexican Grill, Inc. | 11.7% | ▼ Trimmed | $1,486,608,040 | - 10.46% |
| HHH | Howard Hughes Holdings Inc. | 11.5% | $1,450,100,763 | - 0.66% | |
| GOOG | Alphabet Inc. | 11.4% | $1,437,361,516 | + 13.91% | |
| NKE | NIKE, Inc. | 11.2% | ▲ Added | $1,420,246,144 | - 1.32% |
| HLT | Hilton Worldwide Holdings Inc. | 10.6% | ▼ Trimmed | $1,344,685,349 | - 20.85% |
| CP | Canadian Pacific | 8.5% | $1,076,695,603 | - 15.40% | |
| GOOGL | Alphabet Inc. | 6.0% | $754,642,178 | + 14.14% | |
| SEG | Seaport Entertainment Group Inc. | 1.1% | ▲ Added | $140,414,651 | + 144.47% |
| HTZ | Hertz Global Holdings, Inc. | 0.4% | ▲ New | $46,533,105 |
New Positions
Hertz Global Holdings, Inc. HTZ
Pershing Square bought 12,713,963 shares of Hertz Global Holdings, Inc. in Q4 2024. Hertz Global Holdings has faced significant financial challenges over the past 12 months, with Q4 2024 revenues declining 7% year-over-year to $2.04B and a widening net loss of $479M. However, the company's operational transformation shows early promise, narrowing its Adjusted Corporate EBITDA loss to $357M (-13% YoY improvement) and achieving 45% reduction in vehicle depreciation costs through fleet optimization. While still unprofitable, strategic initiatives like 'Buy Right, Hold Right, Sell Right' and targeted completion of operational restructuring by end of 2025 position Hertz for potential recovery.
- Vehicle depreciation costs fell 45% YoY in Q1 2025 to sub-$300 per unit through improved fleet management.
- Adjusted EBITDA loss improved 13% YoY in Q4 2024 ($357M vs $382M) despite 7% revenue decline.
- Average fleet size reduced 4% YoY (532,884 vehicles vs 553,545) as part of operational restructuring.
