Ackman's Pershing Square Deploys Billions, Sees Value in Punished Stocks

Bill Ackman's Pershing Square has made significant moves in its portfolio, deploying nearly $5 billion after the IPO of Pershing Square USA. The fund allocated over 95% of the raised capital to 14 investments, six of which were new positions in stocks.

The strategy behind these purchases combines high-quality companies with those whose valuations have been punished by the market. Two notable additions are Visa and Mastercard, which were added after their multiples fell to approximately 22 times expected earnings for the next 12 months.

Pershing Square highlighted the global networks, low capital intensity, and transaction fee-based models of both companies. They project a compound annual growth rate of 16% for Visa and 18% for Mastercard over the next three to five years.