Why Billionaire Bill Ackman’s Top Picks Beat the Market in Q1

Pershing Square held about 13.94 million shares of Canadian Pacific Railway Limited (USA) (NYSE:CP) valued at $2.69 billion. Ackman’s activist move in Canadian Pacific is one of the greatest examples of how much value can be extracted from an under-performing company with a change of management. With the help of his newly appointed CEO Hunter Harrison, Ackman transformed a $7.1 billion company in 2011 into the $30.08 billion railway giant that it is today. However, Canadian Pacific Railway Limited (USA) (NYSE:CP)’s stock retracted during the first quarter as it lost some 5.03% of its value. Andreas Halvorsen of Viking Global and Daniel S. Och of Oz Management are two other significant investors of the company.

Zoetis Inc (NYSE:ZTS) appreciated by 7.78% during the first quarter, which was also the highest among the top picks in Ackman’s portfolio. In February, the world’s largest animal health group with respect to revenues, added Pershing Square’s Bill Doyle to its board. Pershing Square’s stake amounts to 41.57 million shares valued at $1.78 billion. The $23.2 billion company is a big part of Pershing Square’s holdings in the health care sector, which represent 51% of the fund’s portfolio value. George Soros’ Soros Fund Management holds about 4.1 million shares valued at $176.71 mllion.

Moving on to Ackman’s final top pick, Restaurant Brands International Inc (NYSE:QSR), which was listed on the Exchange in December last year after a merger between Burger King and Canadian coffee shop and restaurant chain Tim Hortons. Pershing Square held some 38 million shares valued at 2.69 billion of the stock, which depreciated by 1.69% during the first quarter. Warren Buffett‘s Berkshire Hathaway also held some 8.44 million shares valued at $329.43 million at the end of 2014.

Disclosure: None