Billionaire Bill Ackman’s 7 Stock Picks with Huge Upside Potential

3. Canadian Pacific Kansas City Limited (NYSE:CP)

Number of Hedge Fund Holders as of Q4: 74

Pershing Square’s Equity Stake: $1.08 Billion 

Upside Potential as of May 5: 24.35%

Canadian Pacific Kansas City Limited (NYSE:CP), headquartered in Calgary, Canada, is a major North American rail freight transportation provider that has significantly expanded its operations following the acquisition of Kansas City Southern in 2023. This transformative merger allowed CP to become the only single-line railroad connecting Canada, the United States, and Mexico, creating a seamless logistics corridor across the three largest economies in North America. The company now operates over 20,000 miles of rail network and employs approximately 20,000 workers. CP offers a wide range of freight transportation services, logistics solutions, and integrated supply chain expertise to its customers across the continent.

By the end of the fourth quarter of 2024, Bill Ackman’s Pershing Square held approximately 14.9 million shares in Canadian Pacific Kansas City Limited (NYSE:CP), signaling strong conviction in the company’s long-term growth. Hedge fund interest in the stock also surged during this period, with 74 hedge funds holding stakes in CP by year-end, up from 52 in the previous quarter, reflecting rising institutional confidence.

Financially, Canadian Pacific Kansas City Limited (NYSE:CP) reported a robust performance for the first quarter of 2025, with revenue increasing 8% year-over-year to $3.8 billion. The company also achieved a 150-basis-point improvement in its operating ratio, now standing at 62.5%, which indicates improved operational efficiency. CP’s commitment to safety has also yielded positive results, with the company reporting record improvements in both train accident rates and personal injuries. Furthermore, in a demonstration of its strong financial health and shareholder value commitment, CP announced a 20% increase in its quarterly dividend.

The company continues to leverage its unique three-nation network to capitalize on emerging trade opportunities, especially between Canada and Mexico. This strategic advantage has already generated over $100 million in new revenue streams, positioning Canadian Pacific Kansas City Limited (NYSE:CP) as a critical player in North American trade logistics. With a solid operational foundation, growing investor confidence, expanding market opportunities, and an upside potential of 24.35%, CP is among the stock picks with huge upside potential in Bill Ackman’s portfolio.