We recently published a list of Bill Ackman’s Stock Portfolio: Top 9 Stocks to Buy. In this article, we are going to take a look at where Brookfield Corporation (NYSE:BN) stands against other stocks to buy in Bill Ackman’s portfolio.
William Albert Ackman, more commonly known as Bill Ackman, is the founder and CEO of Pershing Square Capital Management, a hedge fund management company. Famous for his concentrated portfolio, with stakes in only 8 to 12 stocks at a time, Bill Ackman’s recent portfolio modification has revealed that 47% of his hedge fund is invested in just three stocks.
Analysis of his portfolio reveals that Bill Ackman invests in stocks that are mispriced relative to the long-term value of the company. Historically, this philosophy has served him well since Pershing Square’s total value was just under $13 billion by the end of the third quarter of 2024 with only 9 stocks.
A longtime supporter of the Trump administration, Ackman has been vocal about the benefits that the newly elected president will bring to the investment front. In addition to the prospects of deregulation and corporate tax cuts that could allow for stock prices to rise and have made many investors bullish on the market, Bill Ackman has more vested interests in the Trump office. Pershing has a roughly 10% stake in the common shares of the government-sponsored entities. He took to X to discuss his hypothesis about how Donald Trump could help these giants exit government conservatorship and be recapitalized, leading to substantial shareholder gains for Pershing Square.
In early 2024, Ackman launched a U.S. closed-ended fund called Pershing Square USA, Ltd., and talked about it during his 2024 letter to investors:
“The launch of PSUS is one of a number of strategic initiatives we plan to undertake which we believe will increase the long term sustainability of Pershing Square Capital Management, L.P., (“PSCM” or the “Investment Manager”), and will benefit PSH by reducing the performance fees that it pays. To this end, in June, we sold a 10% interest in PSCM, the proceeds of which will be used to anchor new fund launches including PSUS.”
However, Pershing Square officially canceled its IPO just one day after filing with the SEC due to a $2 billion listing as opposed to its original target valuation of $25 billion. Finally, while announcing the IPO cancellation on X, Ackman wrote “We will report back once we are ready to launch a revised transaction,” hinting at the possible launch of PSUS without listing shares on a stock exchange.
Our Methodology
The stocks discussed below were picked from Pershing Square’s Q3 2024 13F filings. They are compiled in the ascending order of Pershing Square’s stake in them as of September 30, 2024. In order to assist readers with more perspective, we have included the hedge fund sentiment regarding each stock using data from over 900 hedge funds tracked by Insider Monkey in the third 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Brookfield Corporation (NYSE:BN)
Number of Hedge Fund Holders as of Q3: 37
Pershing Square’s Equity Stake: $1.74 Billion
Brookfield Corporation (NYSE:BN) is a Canadian multinational company that is one of the world’s largest alternative investment management companies and the biggest holding in Bill Ackman’s stock portfolio. Headquartered in Toronto, Canada, the company manages direct control investments in real estate, renewable power, infrastructure, credit, and private equity.
Brookfield is among Pershing Square’s newer investments. The hedge fund purchased over 6.85 million shares in the company in Q2 and increased its stake by a whopping 378%. Ackman held roughly 32.74 million shares of Brookfield Corporation (NYSE:BN) as of Q3 2024, which represented 13.47% of his portfolio. As opposed to 34 hedge funds that had stakes in Brookfield Asset Management at the end of the previous quarter, 37 held its shares by Q3 2024.
In January 2025, Brookfield Corporation (NYSE:BN) raised its bets in Japan, Asia’s second-largest economy, by acquiring a stake in a Tokyo commercial complex and a Nagoya logistics project for a total of $1.6 billion. Ankur Gupta, the head of Asia Pacific and Middle East real estate at Brookfield, stated that these transactions reflect the opportunities they plan to pursue in Japan in 2025, focusing on deploying significant real estate capital, especially in logistics and high-quality office spaces.
For the quarter ended September 2024, Brookfield Corporation (NYSE:BN) posted revenues of $1.12 billion which is 25.4% up from the revenues of $893 million in the previous year. Brookfield Asset Management reported quarterly earnings of $0.31 per share in Q3, the same as the quarter a year ago. In November 2024, the company published its earnings call transcript wherein it announced that its Board of Directors had declared a quarterly dividend of $0.08 per share, payable on December 31st to shareholders of record at the close of business on December 16th, 2024.
Overall, BN ranks 1st on our list of stocks to buy in Bill Ackman’s portfolio. While we acknowledge the potential for BN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
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