By Bill Alpert

From June to September, Bill Ackman made two big moves in the hedge fund managed by his Pershing Square Capital. He increased his bets by fivefold on sneaker maker Nike and the alternative-asset manager Brookfield Corp.

Ackman runs a highly-concentrated portfolio, with fewer than 10 positions in the $13 billion in assets that Pershing reported as of September's end. The portfolio report just became public on Thursday, after the delay that U.S. securities regulations allow all hedge funds.

The total value of Pershing's portfolio increased 24% in the third quarter.

It has been a good year for the stocks of alternative-asset managers such as Brookfield Corp. The Toronto-based company owns real estate, renewable power providers, and civil infrastructure around the world. Brookfield's long had a complex structure, and the company also owns 73% of the separately-traded Brookfield Asset Management, or BAM -- a manager that oversees more than $1 trillion in assets.

Brookfield Corp. became Ackman's second-largest holding by September's end, after Google-parent Alphabet. Since June, his Brookfield shareholdings have risen fivefold, to 33 million shares. The stock gained nearly 30% over that span, leaving him with a position worth $1.7 billion -- some 13% of Pershing Square's assets.

Since September, Brookfield Corp. stock has risen another 9%.

Brookfield has a catalyst, too. In early 2025, Brookfield Corp. will change its private stake in BAM into publicly-trading shares of the asset manager. That will position BAM for inclusion in U.S. stock indexes.

Nike shares stumbled this year, as the sportswear business struggled. The stock recovered a bit when Ackman reported his first position in his June filing. He increased his shareholdings by 440% in the third quarter, to 16 million shares, worth some $1.4 billion. Since September, however, Nike's stock has fallen 14%.

Ackman reduced his holdings in Hilton Worldwide Holdings by 18%, taking some profit as the stock rose 6% through the quarter. But Hilton remained one of his largest holdings.

Pershing Square's other positions changed little in the September quarter. Ackman stood fast with his restaurant investments in Chipotle Mexican Grill and the Tim Horton's parent Restaurant Brands International. He also made no change in his stake in Alphabet; a 6% rise in the stock over the third quarter increased the position's value to $1.8 billion.

Write to Bill Alpert at william.alpert@barrons.com

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November 14, 2024 20:00 ET (01:00 GMT)

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