Ackman's 7-Stock Portfolio Quietly Tops Market Expectations

Bill Ackman's Pershing Square Capital Management has been quietly beating the market. Since its launch in 2004, it has outperformed the S&P 500 unevenly. Its flagship fund, Pershing Square Holdings, is also leading the marketwide bullish charge.

The fund's portfolio is notable for its simplicity, with just seven stocks accounting for 98% of its total value. Among these, Microsoft is a standout, having hit bottom after a significant sell-off last August and now trading at a 'compelling valuation' according to Ackman.

Ackman recently explained that the pullback dragged MSFT shares down to a 'compelling valuation' that didn't reflect the true value of Microsoft's cloud business or its office-productivity software. The stock has since soared, reaching multi-month highs in response to recent fiscal fourth-quarter numbers.

Others in the portfolio are also showing promise, including Amazon, which reached a record high last month following solid Q2 cloud computing results.