Billionaire Bill Ackman’s hedge fund, Pershing Square Capital, made headlines recently as it reportedly made a significant portfolio change. The firm has exited a position that previously accounted for 8.7% of its holdings, selling $1.039 billion worth of shares in the railway company Canadian Pacific (CP.TO).
Ackman expressed regret over selling the Canadian Pacific position, stating that he has a strong belief in the long-term future of the business. However, the decision was made to free up cash to invest in online retail giant Amazon (AMZN).
According to Ryan Israel, Pershing Square’s chief investment officer, the firm believes that Amazon will be able to navigate any potential slowdown in its cloud computing division, Amazon Web Services, and that tariffs will not have a significant impact on the retail business. Ackman and his team have confidence in Amazon CEO Andrew Jassy’s ability to drive profit margin expansion while maintaining high revenue growth.
In addition to investing in Amazon, Pershing Square has also acquired shares in car rental company Hertz (HTZ.O) and transport giant Uber (UBER.N).
As of the latest trading session, AMZN stock closed at $200.99, down more than 1% for the day.
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Image credit: Midjourney.