Pershing Square Capital Management founder Bill Ackman earned a whopping $610 million in 2023, propelling him to No. 7 on Bloomberg's annual list of the highest-paid hedge fund founders.
This position marks his highest-ever ranking.
The investment team at Pershing Square, consisting of eight members, achieved a 26.7% gain last year on the heels of a very orthodox buy-and-hold strategy.
Ackman barely moved his portfolio over the last three quarters, choosing to focus on a few shares in large companies — Pershing’s portfolio comprises only eight stocks.
Ackman's portfolio slightly outpaced the S&P 500 Index, as tracked by the SPDR S&P 500 ETF Trust SPY. However, it fell short when compared to the more tech-oriented Nasdaq 100, which rallied 54%.
As of December 2023, Pershing Square’s portfolio was concentrated, with only eight stocks making up its composition. Remarkably, the top five holdings represented 80% of the total portfolio value, indicating a high level of conviction in these few bets.
The portfolio’s standout holdings include Chipotle Mexican Grill CMG, Restaurant Brands International Inc. QSR, and Hilton Worldwide Holdings Inc. HLT, with portfolio percentages of 18.25%, 17.6%, and 16.2% respectively. These companies have shown robust returns in 2023, with Chipotle leading at a 65% return, followed by Restaurant Brands at 58%, and Hilton at 44%.
| Company Name | % of Portfolio | % Return in 2023 |
| Chipotle Mexican Grill Inc. | 18.15% | 65% |
| Restaurant Brands Intl Inc. | 17.55% | 58% |
| Hilton Worldwide HIdgs | 16.08% | 44% |
| Howard Hughes Holdings HHH | 15.06% | 21% |
| Alphabet Inc GOOG | 12.71% | 15% |
| Canadian Pacific Kansas City Ltd. CP | 11.48% | 12% |
| Alphabet Inc Class A GOOGL | 5.85% | 12% |
| Lowe’s Companies Inc LOW | 2.67% | 6% |
Ackman’s Pershing Square touts significant gains primarily stemming from share-price increases in its publicly traded funds, alongside performance gains in private funds and fee income.
Other high-earning hedge fund managers on the list include Millennium's Izzy Englander and Citadel's Ken Griffin. Both individuals topped the Bloomberg list with earnings of $2.8 billion and $2.6 billion, respectively.
TCI Fund Management's Chris Hohn nearly reached the $1 billion mark in earnings with a portfolio of 10 U.S. stock holdings. Notably, two of these holdings — General Electric Co. GE and Canadian National Railway CNI — accounted for more than a quarter of his portfolio.
| Hedge Fund Manager | Firm | Earnings |
|---|---|---|
| Israel Englander | Millennium | $2.8B |
| Ken Griffin | Citadel | $2.6B |
| David Tepper | Appaloosa | $2.3B |
| Steve Cohen | Point72 | $1.6B |
| Jim Simons | Renaissance Technologies | $1.3B |
| Chris Hohn | TCI Fund Management | $970M |
| Bill Ackman | Pershing Square | $610M |
| Karthik Sarma | SRS Investment Management | $560M |
| David Shaw | D.E. Shaw | $540M |
| Paul Singer | Elliott Management | $390M |
| John Overdeck | Two Sigma | $320M |
| David Siegel | Two Sigma | $320M |
| Chris Rokos | Rokos Capital Management | $290M |
| Peter Brown | Renaissance Technologies | $210M |
| Cliff Asness | AQR Capital Management | $180M |
Now Read: Bill Ackman Breaks Wall Street Barriers, Launches Pershing Square Fund For Retail Investors
Image: Bill Ackman. Collage created using photo by Center For Jewish History, NYC on Wikimedia and engin akyurt on Unsplash
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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