Ackman Adds Netflix, Visa, and Mastercard to Pershing Square Portfolio

Bill Ackman's Pershing Square Capital Management has undergone its biggest portfolio overhaul in years, adding three new stocks to its holdings. The fund's founder and CEO is known for his concentrated portfolio, with only 14 holdings as of June 30. Among the notable additions are Netflix, Visa, and Mastercard.

Pershing Square bought these companies likely due to their undervalued or fairly valued status. Netflix shares have declined by about 32% over the past year, but its price-to-earnings ratio is now at 26, below its five-year average of 36. The company still grows, albeit slower, and faces increased competition.

Visa and Mastercard's shares also appear fairly valued, with recent price-to-earnings ratios of 33, close to their respective five-year averages. Both fintech giants have a history of strong growth, averaging nearly 22% annual gains over the past 15 years. However, they may face regulatory challenges due to their dominance in the industry.