Bill Ackman's Pershing Square Adjusts Portfolio, Trims Chipotle and Boosts Nike

Billionaire investor Bill Ackman has ramped up his stake in Nike NKE by 15%, while simultaneously cutting back his investment in Chipotle Mexican Grill CMG by 14%, as per the recent 13F regulatory filing.

What Happened: Ackman’s firm, Pershing Square Capital Management, now holds 18.8 million shares in Nike and 24.7 million shares in Chipotle. Pershing Square has been a Chipotle shareholder since 2016.

Ackman, known for his active involvement in companies like Canadian Pacific Kansas City and Air Products and Chemicals, has been relatively quiet in recent years. Nonetheless, his investment decisions continue to draw interest.

Over time, Pershing Square has been steadily decreasing its investment in Chipotle, one of its major success stories in recent years. As of June 30, the firm owned 28.8 million Chipotle shares.

The regulatory document 13F filing, also disclosed that Pershing Square trimmed its stake in Hilton Worldwide Holdings HLT by 26% to 5.4 million shares.

Also Read: Bill Ackman’s Advice: ‘Stay Away From Shorting Stocks, Avoid Commodity-Sensitive Industries, And You Do Great’

The firm’s largest holding is investment company Brookfield, with roughly 35 million shares.

Why It Matters: This portfolio adjustment comes as Ackman’s firm continues to navigate the fluctuating market conditions. The decision to increase the stake in Nike could be seen as a vote of confidence in the sportswear giant’s growth prospects.

On the other hand, the reduction in Chipotle and Hilton stakes might suggest a cautious approach towards the hospitality sector, which has been hit hard by the pandemic.

These moves reflect Ackman’s strategy of balancing growth potential with risk management in his investment decisions.

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