Ackman's New Fund Loads Up on Microsoft, Meta, and Uber

Bill Ackman's new hedge fund, Pershing Square USA (PSUS), has deployed nearly all of its capital raised in an IPO earlier this year. The fund's portfolio is similar to its existing counterpart, Pershing Square Holdings (PS). Three stocks make up roughly 45% of the new fund's holdings: Microsoft (MSFT), Meta Platforms (META), and Uber Technologies (UBER).

Ackman, known for his highly concentrated portfolios, expects these three companies to compound earnings growth quickly. However, the stocks trade at relatively low earnings multiples.

Microsoft is a leading enterprise software company and cloud platform-as-a-service provider that has benefited from artificial intelligence advancements over the past few years. Ackman believes Microsoft's core 365 software suite is resilient to AI disruption, citing its strong revenue growth and expanding user base.

META Platforms is another beneficiary of AI, according to Ackman, with its advertising business experiencing a significant acceleration in revenue due to improved recommendation algorithms driven by AI advancements.

Uber Technologies has seen its valuation disconnected from fundamentals due to concerns over autonomous vehicles, but Ackman sees value in the company's network effect and potential for growth as autonomous vehicles come to market.