Ackman Dives into Fee-Collecting Giants Visa, Mastercard, S&P Global

Pershing Square, led by Bill Ackman, has taken a significant stake in three companies that collect fees on transactions they don't originate: Visa, Mastercard, and S&P Global. The fund disclosed new positions of around $1.1 billion each in the three stocks as of June 30.

The combined value of these stakes amounts to about $3.3 billion, making them a significant portion of Pershing Square's portfolio. Visa processed 71.7 billion transactions last quarter, up 10% year over year, generating $11.6 billion in net revenue at an operating margin near 60%. Mastercard also saw growth in its second-quarter gross dollar volume, rising 8% on a local-currency basis to $2.9 trillion.

S&P Global operates similarly, collecting fees for credit ratings and licensing its indices to fund managers. The company's ratings revenue rose 17% year over year in the second quarter, to $1.34 billion, with transaction fees up 25%. The three companies share a trait: they collect fees on activity without taking significant risk or creating the transactions themselves.