In this article, we will discuss Billionaire Bill Ackman’s 7 Stock Picks with Huge Upside Potential.
Known commonly as Bill Ackman, William Albert Ackman is the founder and Chief Executive Officer of Pershing Square, a hedge fund renowned for its focused investment strategy and high-conviction portfolio. Ackman is known for maintaining a highly concentrated investment approach, often holding stakes in only 8 to 12 companies at any given time. By the end of the fourth quarter of 2024, Pershing Square’s portfolio was valued at $12.66 billion and included ten stocks, with over 50% of the fund’s capital concentrated in just the top four investments. This exemplifies Ackman’s commitment to identifying and capitalizing on undervalued opportunities, favoring companies that he believes are mispriced in relation to their intrinsic, long-term value.
Ackman’s investment philosophy has largely centered on value-based principles and activist strategies. His ability to identify market inefficiencies and apply pressure for change has yielded significant returns in the past. Pershing Square’s portfolio selections typically reflect this strategy, with a strong emphasis on companies with solid fundamentals and potential for operational or financial turnaround.
In early 2024, Ackman took a notable step by launching a U.S. closed-end fund named Pershing Square USA, Ltd. However, the initial public offering (IPO) of the fund was abruptly canceled just one day after filing with the Securities and Exchange Commission (SEC). The cancellation followed an unexpected drop in valuation from an intended $25 billion to just $2 billion. Following the cancellation, Ackman posted on the social media platform X that the firm would “report back once we are ready to launch a revised transaction,” suggesting that Pershing Square USA may still proceed in the future without a traditional stock exchange listing.
Ackman’s active engagement with both market trends and political developments illustrates his multifaceted approach to investing. As Pershing Square continues to evolve, close attention is being paid to the stocks within its concentrated portfolio, particularly those with the highest upside potential in light of current economic and political tailwinds.
Now that we have sufficient context, let’s analyze billionaire Bill Ackman’s 7 stock picks with huge upside potential.
Bill Ackman of Pershing Square
Our Methodology
For this list, we searched through Pershing Square’s Q4 2024 13F filings to identify billionaire Bill Ackman’s stock picks with the highest upside potential. We compiled the equities with upside potential higher than 12% at the time of writing this article and analyzed why they stood out as sound potential investments. Finally, we ranked the stocks based on the ascending order of their upside potential. To assist readers with more context, we mentioned the hedge fund sentiment around each stock using data from 1,009 hedge funds tracked by Insider Monkey in the fourth quarter of 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 363.5% since May 2014, beating its benchmark by 208 percentage points (see more details here).
Billionaire Bill Ackman’s 7 Stock Picks with Huge Upside Potential
7. Chipotle Mexican Grill, Inc. (NYSE:CMG)
Number of Hedge Fund Holders as of Q4: 83
Pershing Square’s Equity Stake: $1.49 Billion
Upside Potential as of May 5: 12.94%
Chipotle Mexican Grill, Inc. (NYSE:CMG) is an American multinational chain of fast-casual restaurants specializing in Mexican cuisine such as burritos, bowls, and tacos. The brand has earned a strong following among both younger and older demographics, thanks to its responsiveness to local tastes and popular culture. Among its key investors is billionaire hedge fund manager Bill Ackman, who has maintained a stake in the company since 2016. Through his firm, Pershing Square, Ackman currently holds approximately 24.65 million shares of Chipotle, making up 11.74% of his entire portfolio. The company is one of just two restaurant-sector investments in Pershing Square’s portfolio, reflecting Ackman’s long-term confidence in its growth potential.
For the first quarter of 2025, Chipotle Mexican Grill, Inc. (NYSE:CMG) reported adjusted earnings per share of 29 cents, slightly beating analyst expectations of 28 cents. However, revenue came in at $2.88 billion, just under the anticipated $2.95 billion. Despite a 6.4% year-over-year increase in net sales, the company fell short of key performance benchmarks. Same-store sales declined by 0.4%, missing analyst estimates of 1.7% growth, while restaurant transactions dropped 2.3%.
Economic uncertainty appears to be dampening consumer spending, with CEO Scott Boatwright noting that many customers began scaling back visits in February due to financial concerns. This trend was confirmed by the company’s visitation studies, which showed that saving money was the predominant reason for reduced restaurant frequency. The slowdown in traffic continued into April, despite March seeing a modest lift in sales from the limited-time introduction of Chipotle Mexican Grill, Inc. (NYSE:CMG)’s chipotle honey chicken.
Despite these challenges, Boatwright expressed confidence in Chipotle’s ability to rebound in the second half of 2025. He emphasized ongoing investments in key areas such as staffing, culinary innovation, value offerings, and brand growth. The company now forecasts same-store sales to grow in the low single digits for the full year, revising its earlier projection of growth in the low- to mid-single-digit range. Nevertheless, investor sentiment remains relatively optimistic. With an estimated upside potential of 12.94%, Chipotle Mexican Grill, Inc. (NYSE:CMG) remains one of the high-upside stocks in Bill Ackman’s portfolio, underscoring its strategic importance amid a volatile consumer landscape.
Parnassus Growth Equity Fund stated the following regarding Chipotle Mexican Grill, Inc. (NYSE:CMG) in its Q3 2024 investor letter:
“Against the backdrop of macro uncertainty, we opportunistically added high-quality businesses that had sold off amid overstated fears of consumer spending weakness. These new holdings include fast-casual chain Chipotle Mexican Grill, Inc. (NYSE:CMG) and Latin American online retail giant MercadoLibre in the Consumer Discretionary sector.
Chipotle is a leader in the fast casual dining category, bolstered by strong brand affinity and the growing trend toward healthy eating. While near-term consumer weakness and margin pressure are expected, we believe Chipotle can navigate it better than peers due to its superior execution and long runway for new store openings.”
6. Restaurant Brands International Inc. (NYSE:QSR)
Number of Hedge Fund Holders as of Q4: 31
Pershing Square’s Equity Stake: $1.50 Billion
Upside Potential as of May 5: 15.21%
Restaurant Brands International Inc. (NYSE:QSR) is a Canadian-American multinational fast-food holding company and one of two restaurant-related investments held by billionaire investor Bill Ackman through his hedge fund. As of the fourth quarter of 2024, Pershing Square owns over 23 million shares in the company, valued at just under $1.5 billion. Ackman’s position reflects his continued confidence in the long-term growth potential of Restaurant Brands International, which operates more than 30,000 restaurants in over 120 countries. The company owns four major quick-service restaurant chains: Tim Hortons, Burger King, Popeyes, and Firehouse Subs. It was formed in 2014 from the merger of Tim Hortons and Burger King and later expanded through the acquisition of Popeyes in 2017 and Firehouse Subs in 2021.
For its most recent quarter, Restaurant Brands International Inc. (NYSE:QSR) reported better-than-expected financial results. Adjusted earnings per share came in at 81 cents, beating analysts’ expectations of 79 cents. Revenue reached $2.3 billion, also exceeding forecasts of $2.27 billion. Despite a decline in net income to $361 million, down from $726 million a year earlier, the company saw net sales climb 26%. This growth was largely attributed to the acquisitions of its largest U.S. Burger King franchisee and Popeyes China, which took place in the prior year.
CEO Josh Kobza highlighted the company’s performance, noting that a 2.5% same-store sales growth across all brands represented a solid showing relative to industry peers. Internationally, same-store sales grew by 4.7%, surpassing analyst estimates of 2.7%, driven primarily by strength in Burger King and Popeyes. Restaurant Brands International Inc. (NYSE:QSR) also expanded its restaurant base by 3.4%, adding 1,055 new locations compared to the same period the previous year. Looking ahead, Restaurant Brands plans to invest between $400 million and $450 million in 2025 on capital expenditures, tenant inducements, and other strategic incentives to fuel further growth.
The company’s growth potential has also caught the attention of other institutional investors. According to Insider Monkey’s database, 31 hedge funds held positions in Restaurant Brands International Inc. (NYSE:QSR) at the end of Q4 2024, up from 29 in Q3. This growing interest underscores investor confidence in the company’s strategic direction and international expansion opportunities.
Pershing Square Holdings stated the following regarding Restaurant Brands International Inc. (NYSE:QSR) in its Q2 2024 investor letter:
“Restaurant Brands International Inc.’s (NYSE:QSR) two largest brands delivered impressive results this quarter. Tim Hortons’ same-store sales in Canada grew by nearly 5%, outpacing all competitors and the broader industry. These strong results are due to the multi-year investment the company has made in broadening its food platform and expanding its lead in cold beverages. Burger King International reported same-store sales of more than 2%, despite ongoing boycotts of western brands. Burger King is outperforming McDonald’s on a one-year basis and relative to pre-covid levels. Its success in international markets provides a blueprint for its ongoing turnaround in the U.S., where the company is focused on modernizing its store base and growing its digital business. As part of that effort, the company acquired Carrols, Burger King’s largest franchisee, which will allow the company to accelerate remodels and help shift the franchise system towards smaller more entrepreneurial operators, setting the brand up for long-term success. The company intends to refranchise the Carrols restaurants to smaller operators once the stores are performing at strong levels.
In light of weakening economic conditions and ongoing boycotts, the company lowered its net restaurant and system-wide sales growth outlook this year. In response, the company is enacting a cost savings program which will enable it to grow operating profits by more than 8%. While an uncertain environment may impact unit growth in the near-term, we believe each of the company’s brands will benefit in a slower economic environment with consumers trading down.
Despite strong performance at its largest brands, consistent operating profit growth, and a business model that benefits in a recessionary environment, QSR still trades at a meaningful discount to its peers. As the company returns to its historic mid-single-digit unit growth and delivers consistent performance at each of its brands, we believe the company’s share price will more accurately reflect its improving fundamentals.”
5. Brookfield Corporation (NYSE:BN)
Number of Hedge Fund Holders as of Q4: 37
Pershing Square’s Equity Stake: $2 Billion
Upside Potential as of May 5: 15.95%
Brookfield Corporation (NYSE:BN) is a Canadian multinational and one of the world’s largest alternative investment management firms. Headquartered in Toronto, the company oversees direct control investments across a range of asset classes, including real estate, renewable energy, infrastructure, credit, and private equity. Known for its global reach and diversified investment portfolio, Brookfield continues to be a dominant force in alternative asset management. With an estimated upside potential of 15.95%, it ranks fifth among Bill Ackman’s top stock picks with massive growth potential.
Brookfield Corporation (NYSE:BN) is one of the newer additions to Ackman’s portfolio. The hedge fund initiated a position in Brookfield during the second quarter of 2024 and has since been increasing its stake. During the fourth quarter of 2024, Ackman raised his holdings by 7%, bringing the total to approximately 34.89 million shares. This investment now accounts for 15.83% of Pershing Square’s total portfolio, underscoring Ackman’s confidence in the company’s long-term performance.
Brookfield Corporation (NYSE:BN) reported record financial results for 2024, reflecting strong contributions from all divisions of its business. Nick Goodman, President of Brookfield Corporation, highlighted key achievements, noting that the asset management arm attracted over $135 billion in inflows, the wealth solutions unit had solidified its role as a top-tier annuity provider in the U.S., and the operating businesses continued to generate high-quality, stable cash flows. For the fourth quarter of 2024, Brookfield posted consolidated net income of $101 million, contributing to a full-year total of $1.9 billion.
In line with its strong financial performance, Brookfield Corporation (NYSE:BN)’s Board of Directors announced a 13% increase in its quarterly dividend, raising the payout to $0.09 per share or $0.36 annually. This dividend is payable on March 31, 2025, to shareholders of record as of March 14, 2025.
4. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders as of Q4: 234
Pershing Square’s Equity Stake: $1.44 Billion
Upside Potential as of May 5: 22.06%
Alphabet Inc. (NASDAQ:GOOGL), a parent company of Google, remains a central figure in the technology sector and is currently the only tech stock held by Bill Ackman’s Pershing Square. As such, it serves as the hedge fund’s sole exposure to the booming artificial intelligence (AI) industry, making it a critical strategic investment. Among Ackman’s portfolio, Alphabet stands out with a notable upside potential of 22.06%, positioning it as one of the top stocks with significant growth prospects. The company has also seen increasing hedge fund interest—by the end of Q4 2024, 234 hedge funds out of 1,009 tracked by Insider Monkey held stakes in GOOGL, up from 202 funds in the previous quarter. The total value of these holdings reached $39.59 billion, indicating rising confidence among institutional investors.
For the first quarter of 2025, Alphabet Inc. (NASDAQ:GOOGL) reported stronger-than-expected financial results, with earnings per share (EPS) of $2.81 and revenue of $90.2 billion. These figures surpassed analysts’ estimates, which had projected EPS of $2.01 on revenue of $89.1 billion. Comparatively, during Q1 of the previous year, the company posted EPS of $1.89 on revenue of $80.5 billion, highlighting substantial year-over-year growth. A major contributor to this performance was Google’s advertising division, which brought in $66.8 billion, slightly above the anticipated $66.4 billion. Meanwhile, the Google Cloud Platform generated $12.2 billion in revenue, just below the $12.3 billion forecast, but still a marked improvement from the $9.5 billion it posted in Q1 2024.
Despite these strong financial results, Alphabet Inc. (NASDAQ:GOOGL) is facing significant regulatory challenges. In April 2025, a U.S. federal judge ruled that Google maintains an illegal monopoly over the online advertising market, a decision that could compel the company to divest or reorganize its advertising operations. This ruling comes on the heels of another antitrust loss less than a year earlier, in which Google’s search and ad businesses were also found to be in violation of U.S. antitrust laws. These ongoing legal battles cast uncertainty over parts of Alphabet’s core business, even as it continues to grow its revenues and deepen its presence in the AI space.
Oakmark Equity and Income Fund stated the following regarding Alphabet Inc. (NASDAQ:GOOGL) in its Q4 2024 investor letter:
“Alphabet Inc. (NASDAQ:GOOGL) was the top contributor during the quarter. Despite ongoing litigation with the Department of Justice in its antitrust case, the U.S.-headquartered interactive media and services company’s stock price rose after posting solid third-quarter earnings. In the Search division, the company generated low-teens year-over-year revenue growth and management highlighted that they’re seeing strong user engagement with their new AI Overviews feature. The biggest upside surprise came from the Cloud division, where revenue growth accelerated to 35% and margins reached a record of 17%. This performance was driven by client demand for AI Infrastructure and Generative AI Solutions as well as core Google Cloud Platform (GCP) products. We continue to believe Alphabet is a collection of great businesses that can unlock further value over the long term through its world-class AI capabilities.”
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.
2. Howard Hughes Holdings Inc. (NYSE:HHH)
Number of Hedge Fund Holders as of Q4: 39
Pershing Square’s Equity Stake: $1.45 Billion
Upside Potential as of May 5: 34.39%
Howard Hughes Holdings Inc. (NYSE:HHH) is a real estate development and management company headquartered in The Woodlands, Texas. It was established in 2010 through a spin-off from General Growth Properties and has since focused primarily on developing and managing large-scale, master-planned communities. The company’s portfolio includes a range of residential, commercial, and mixed-use properties concentrated in high-growth regions of the United States. These master-planned communities are designed to be self-sustaining ecosystems, blending housing, commerce, and recreation to create long-term value.
Financially, Howard Hughes Holdings Inc. (NYSE:HHH) posted strong results in the fourth quarter of 2024. The company reported quarterly sales of $120.29 million, up from $103.81 million in the same period the previous year. Total revenue surged to $983.59 million from $312.96 million, marking a significant increase. Net income for the quarter rose to $156.32 million, a substantial jump from $34.3 million a year earlier. Basic earnings per share from continuing operations stood at $3.27, more than triple the $1.06 reported in the prior year.
For the full fiscal year, Howard Hughes Holdings Inc. (NYSE:HHH) continued this positive momentum. Sales totaled $466.86 million, up from $429.87 million in the previous year. Revenue nearly doubled to $1.75 billion from $908.75 million, while net income soared to $197.7 million, a stark reversal from the prior year’s net loss of $551.77 million. Basic earnings per share from continuing operations were $5.75, up from $1.68, highlighting the company’s strong operational turnaround and improved profitability.
The stock ranks second among Ackman’s holdings in terms of upside potential, with analysts projecting a gain of 34.39%. This strong financial performance and strategic positioning suggest that Howard Hughes Holdings Inc. (NYSE:HHH) is in a phase of robust growth, driven by the successful execution of its master-planned development model. Its focus on high-demand urban regions and its unique ability to design and control entire communities gives it a defensible competitive advantage. The stock’s high upside potential further reinforces the belief that HHH is well-positioned to capitalize on demographic and economic trends favoring mixed-use, sustainable real estate development.
1. Nike Inc. (NYSE:NKE)
Number of Hedge Fund Holders as of Q4: 73
Pershing Square’s Equity Stake: $1.42 Billion
Upside Potential as of May 5: 35.43%
Nike Inc. (NYSE:NKE), headquartered in Oregon, is a globally recognized leader in athletic footwear, apparel, and accessories. Employing more than 83,000 people worldwide, the company operates through three primary segments: Nike Brand, Converse, and Corporate.
In its most recent quarterly earnings report for the three months ending February 28, Nike Inc. (NYSE:NKE) reported earnings per share of $0.54, significantly surpassing consensus estimates of $0.29. Revenue reached $11.27 billion, also beating projections of $11.01 billion. However, the performance represented a decline from the same period the previous year, when Nike posted a net income of $1.17 billion, or $0.77 per share, on $12.4 billion in revenue. This year’s net income declined to $794 million, reflecting a 32% drop in profits compared to the year-ago period.
The sales decline, approximately 9% year-over-year, was attributed to weakened demand in January and February, which followed strong December holiday performance. Nike Inc. (NYSE:NKE) also experienced margin pressure during the quarter, as gross margin dropped by 3.3 percentage points to 41.5%, missing analysts’ expectations of 41.8%. This contraction was largely due to increased discounts, higher product costs, and a need to clear out outdated inventory to make room for new and more innovative product lines.
Direct-to-consumer sales also declined, with revenue from Nike’s owned channels dropping 12% to $4.7 billion, while wholesale revenue slipped 7% to $6.2 billion. The broader retail environment has been challenged by declining consumer sentiment and weaker-than-expected retail sales in both January and February.
Compounding these challenges, the imposition of a new 20% U.S. tariff on goods imported from China has placed additional strain on Nike’s cost structure. According to a recent manufacturing disclosure, approximately 24% of Nike’s suppliers and manufacturers are located in China. Without a clear strategy to offset these new costs, Nike’s profit margins are likely to remain under pressure. The company has yet to indicate how it plans to address the financial impact of these duties.
Despite these short-term setbacks, Nike Inc. (NYSE:NKE) maintains a strong position within the retail sector and remains a brand with global reach and customer loyalty. With an upside potential of 35.43%, the stock continues to be seen as an attractive investment opportunity for long-term growth.
Overall, NKE ranks first among billionaire Bill Ackman’s 7 stock picks with huge upside potential. While we acknowledge the potential of these stock picks, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than NKE but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stock To Buy Now and 30 Best Stocks to Buy Now According to Billionaires
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
