Pershing Square, managed by Bill Ackman, began building a position in Meta last November at an average cost of $625 per share. Meta's stock closed at $669 per share overnight, representing an increase of approximately 14% since the initial investment. Pershing Square has now established a position in Meta worth about $2 billion, accounting for 10% of the fund’s capital. The firm believes that Meta's business model is one of the clearest beneficiaries of AI integration.
Renowned hedge fund manager Bill Ackman has placed a bet$Meta Platforms (META.US)$ that Meta Platforms will prevail in the artificial intelligence race. His firm, Pershing Square, has established a position in Meta worth approximately $20 billion, accounting for 10% of its fund's capital, making it one of the largest holdings in the portfolio.
According to the Wall Street Journal, Pershing Square disclosed this investment at its annual investor conference on Wednesday. The firm began building its position in Meta in November last year at an average cost of $625 per share. At the time, investors were concerned about Meta's substantial spending in the AI sector, which had led to a decline in its stock price of about 13% over the past six months, creating an entry opportunity for Pershing Square.
Pershing Square believes that Meta's business model is one of the clearest beneficiaries of AI integration. In its investor presentation, the fund stated that AI would enhance Meta’s content recommendation and personalized advertising capabilities and could open up new opportunities in areas such as wearable devices or enterprise AI digital assistants.
As of Wednesday's market close, Meta Platforms' stock price stood at $669, marking an increase of approximately 14% since Pershing Square initiated its position. However, unlike previous instances where Ackman’s investments triggered significant market reactions, Meta Platforms' share price remained largely unchanged on the day of the disclosure. In contrast, last April, Ackman’s investment in $Hertz Global (HTZ.US)$ led to a surge in its stock price of over 50%.
Continuation of Concentrated Investment Style
Ackman is known for his highly concentrated investment portfolio. As of the end of 2025, Pershing Square holds only 13 stocks, including other major technology companies such as $Alphabet-A (GOOGL.US)$ and $Amazon (AMZN.US)$Along with other large technology companies. In recent months, the fund has liquidated two long-term positions—$Chipotle Mexican Grill (CMG.US)$ and Hilton Worldwide.
Meta has become the fund's third-largest technology stock holding. This allocation reflects Ackman’s preference for a small number of high-conviction positions rather than a diversified investment strategy.
Pershing Square Holdings achieved a return of 20.9% last year, outperforming the S&P 500 Index's total return of 17.9%. Alphabet, Fannie Mae, and Freddie Mac were among its top contributors. However, in January this year, the fund declined by 2.5%.
From the initiation of the Meta position to the end of 2025, the stock rose by 11%, and as of February 9 this year, it had gained another 3%. This performance provided support for Pershing Square's overall returns.
In addition to Meta Platforms, Pershing Square made several other large-scale investments in 2025. The fund invested $900 million in a real estate company $Howard Hughes Holding (HHH.US)$Invest $900 million and acquire an insurance company.$Vantage (VNTG.US)$ Provide support of up to 1 billion US dollars.
Notably, Ackman is a follower of Warren Buffett and aims to transform Howard Hughes into a diversified holding company akin to Berkshire Hathaway. This strategy highlights that his investment perspective has evolved beyond mere stock selection to focus on deeper corporate value restructuring.
Editor/KOKO