Bill Ackman's Strategic Exit from Lowe's Companies Inc in Q1 2024

Insights into Pershing Square's Latest 13F Filing

Bill Ackman (Trades, Portfolio), renowned for his activist investment approach through Pershing Square, has made notable changes to his portfolio in the first quarter of 2024. Starting his career in real estate before founding Gotham Partners and later Pershing Square in November 2003, Ackman is known for targeting undervalued companies and pushing for significant operational or managerial changes to unlock shareholder value. His investment strategy focuses on buying at a discount and selling when the stock reflects its intrinsic value.

• Warning! GuruFocus has detected 5 Warning Sign with CMG.

Summary of Sold Out Positions

During the first quarter of 2024, Bill Ackman (Trades, Portfolio) made a complete exit from one of his holdings:

• Lowe's Companies Inc (NYSE:LOW): Ackman sold all 1,245,515 shares, which had a -2.67% impact on the portfolio.

Key Position Reductions

Ackman also adjusted his stakes in other key holdings:

• Reduced his position in Chipotle Mexican Grill Inc (NYSE:CMG) by 81,014 shares, resulting in a -9.82% decrease in shares and a -1.78% impact on the portfolio. The stock traded at an average price of $2,556.81 during the quarter and has seen a return of 20.96% over the past three months and 38.47% year-to-date.

Portfolio Overview

As of the first quarter of 2024, Bill Ackman (Trades, Portfolio)'s portfolio consisted of 7 stocks. The top holdings were:

• 20.1% in Chipotle Mexican Grill Inc (NYSE:CMG)

• 18.2% in Hilton Worldwide Holdings Inc (NYSE:HLT)

• 17.24% in Restaurant Brands International Inc (NYSE:QSR)

• 13.27% in Alphabet Inc (NASDAQ:GOOG)

• 12.72% in Howard Hughes Holdings Inc (NYSE:HHH)

These holdings are predominantly concentrated in four industries: Consumer Cyclical, Communication Services, Real Estate, and Industrials.

This strategic reshuffling highlights Ackman's ongoing commitment to optimizing his investment portfolio in alignment with his value-driven investment philosophy. The exit from Lowe's and the reduction in Chipotle suggest a significant reallocation of resources, likely aimed at capitalizing on other emerging opportunities or mitigating risks in the face of market fluctuations.

This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.

This article first appeared on GuruFocus.