Well-known hedge fund manager Bill Ackman is also considered an investor activist. In 2003, he founded Pershing Square (NYSE 🙂 Capital, an investment adviser registered with the US Securities and Exchange Commission (SEC).
Pershing Square Holdings (LON 🙂 (OTC 🙂 is a closed-end fund managed by Akman. Bottom:
“Makes concentrated investments in public companies, mainly located in North America.” PSH is registered in Guernsey … “
In December 2020, PSHP shares entered the main index of the UK stock market.
According to the company in its annual report for the 2021 fiscal year, net income was 26.9% compared to 28.7% for.
Over the past year, shares have risen by about 1% and offer a dividend yield of almost 1.5%. According to indicators provided by InvestingPro, the financial condition of PSHP shares is estimated as 4 out of 5 compared to its counterparts in the financial sector.
Source: Investing Pro
Those wishing to participate in the potential growth offered by Pershing Square Holdings can simply purchase PSHP shares. Others may prefer to diversify through exchange-traded funds (ETFs), which provide access to securities currently held by Pershing Square Capital Management.
The InvestingPro website also provides access to these names. Readers can also follow the 13F documents on the SEC website.
There are currently six companies in Bill Ackman’s portfolio. Five of them are consumer shares at their discretion, and the last is a real estate company. Let’s take a closer look.
A quarter of the portfolio is currently invested in Lowe’s Companies (NYSE :), a DIY retailer. The company also has the largest market capitalization (cap) among these six holdings.
Since January, LOW shares have lost almost 20% and the dividend yield is 1.59%. Two ETFs have a LOW rating: Invesco Dynamic Building & Construction ETF (NYSE 🙂 and iShares US Home Construction ETF (NYSE :).
Among the six positions, two have similar weights and market capitalizations, namely Hilton (NYSE :), a global hospitality giant, and Chipotle Mexican Grill (NYSE :), a Mexican food chain. Their allocations are about 18.5% and their market capitalization is about $ 41 billion.
The Kelly Hotel & Lodging Sector ETF (NYSE 🙂 and the Defiance Hotel, Airline and Cruise ETF (NYSE 🙂 may be of interest to those who want to invest in HLT stocks.
For potential investors in CMG stocks, the Uncommon Portfolio Design Core Equity ETF (NYSE: UGCE) and the AdvisorShares Restaurant ETF (NYSE 🙂 may offer admission to the stock.
The remaining 38% of Pershing’s portfolio is more or less three companies: Restaurant Brands International (NYSE :), Howard Hughes (NYSE 🙂 and Domino’s Pizza (NYSE :). HHC is a real estate company and the other two are a restaurant business.
Of these three companies, QSR shares in Canada are champions of dividends with a yield of 3.9%. It is also at a good price in terms of fair (or intrinsic) value, as the stock can grow by 30%. The Invesco International Dividend Achievers ETF (NASDAQ 🙂 will be an ETF for those who want to invest in QSR.
Income growth is an important indicator for long-term investors. In this respect, HHC deserves to be on the radar screen, as its growth exceeds 100% compared to last year. Two other ETFs worth mentioning are the Genuine Investors ETF (NYSE: GCIG) and the iShares US Real Estate ETF (NYSE:), which invest in the HHC. In addition, the share of PPP is also in the EATZ fund.
Readers wondering how Wall Street analysts rate these six stocks may want to know that they all have growth potential compared to their current levels. For example, LOW can grow by more than 40%. Followed by CMG (31.5%), HHC (27.6%), QSR (19.7%), DPZ (16.3%) and HLT (4.1%).
Finally, an alternative for a retail investor is to purchase an ETF that contains a combination of these stocks. In this case, the discretionary ETF Invesco S&P 500 Equal Weight Consumer (NYSE 🙂 deserves further study.
LOW, HLT, CMG and DPZ are part of this ETF. The fund has lost 15.1% since the beginning of the year, offering long-term investors better value.
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