Billionaire Bill Ackman's Pershing Square Capital Management appears to have had a strong Q2 this year, according to a recent 13F report. The billionaire's 13F portfolio value increased by about 20% for the three-month period ending on June 30th, up to about $5.8 billion. In the process, Ackman increased his position in United Technologies Corp. (UTX) and entered a new stake in Lowe's Companies Inc. (LOW). The investment in LOW was a significant one, as it now represents the third-largest holding in the hedge fund's 13F portfolio.
New Investments in UTX and LOW
Perhaps the biggest news out of Ackman's fund from last quarter is that it invested a significant amount of money in hardware store Lowe's. As of the end of June, LOW represents about 12.7% of Pershing's portfolio. Ackman bought the shares at prices between $81 and $101; the stock is currently trading just below the upper end of that range at more than $98 per share.
Ackman also increased his position in UTX last quarter. It now accounts for roughly 10% of Pershing's total 13F portfolio. First established in Q1 of this year at prices as high as $138 per share, the UTX position more than doubled in Q2. Currently, the stock trades at around $132 per share. Ackman has joined rival hedge funder Dan Loeb of Third Point in taking interest in United Technologies; Third Point established an activist stake in UTX last quarter.
A third name that Ackman bought in Q2 was Mondelez International (MDLZ). MDLZ is about 12% of the fund's total portfolio, established in the second half of 2015. Ackman has generally been trimming his position in recent quarters; Q2 saw a marginal increase.
Trimming of QSR and ADP
While Ackman did not exit any position entirely last quarter, he nonetheless adjusted some of his existing holdings by selling off shares. Pershing sold off about 22% of his position in Restaurant Brands International (QSR) between the past two quarters. Nonetheless, QSR is still the largest 13F position in Ackman's portfolio, accounting for more than 20% of the fund's assets.
Ackman also reduced his position in Automatic Data Processing (ADP), selling about 47% of his shares this quarter at prices as high as $140. ADP still accounts for about 10% of Pershing's portfolio, and the billionaire indicated in an investor letter that his fund's average entry price on ADP was at $105 per share.
Pershing Square's portfolio is heavily concentrated; indeed, the fund's 13F portfolio contains just eight names, up from seven in Q1 of this year. The exact balance of these names may have shifted since the end of the most recent 13F reporting period in June.
Update: A media rep for Pershing contacted Investopedia with the following: "While the 13-f reflects the sale of common shares, it doesn’t include the options PS holds, so its ownership of ADP is much bigger than the 4.2 million shares... Recent 13-D outlines that position."