Ackman Snaps Up Visa, Mastercard, and Netflix Stocks for Pershing Square Holdings

Pershing Square Holdings, an investment vehicle in the FTSE 100 run by billionaire hedge fund manager Bill Ackman, has recently revealed its new stock purchases for the first half of the year. The company owns exposure to 10-12 world-class companies and has generated a 15.6% annualised net return (after fees) over nearly 23 years, surpassing the S&P 500's 11% return.

Three stocks caught the eye of observers: Visa (NYSE:V), Mastercard (NYSE:MA), and Netflix (NASDAQ:NFLX). Pershing Square sees both Visa and Mastercard as 'toll-takers' with remarkable profit margins, benefiting from higher inflation. They earn a nominal fee on each transaction without taking material risk.

However, there's growing regulatory risk due to the networks functioning as a virtual duopoly, potentially forcing some traffic onto alternative networks. Netflix, down 42% since last June, is seen by Pershing Square as a 'fallen star' but still an undisputed streaming champion with more than 325m subscribers.