Bill Ackman Stacks 45% of His New $5 Billion Fund Into 3 Stocks

Bill Ackman's Pershing Square USA (NYSE:PSUS) raised $5 billion through its April 29 IPO at $50 per share, the largest closed-end fund launch in U.S. history, and he quickly deployed nearly all of it. Three stocks now account for roughly 45% of the portfolio, Microsoft (NASDAQ:MSFT) at 17.9%, Meta Platforms (NASDAQ:META) at 14.7%, and Uber Technologies (NYSE:UBER) at 12.8%.

Ackman projects 19% to 25% annual earnings growth for each of the three over the next three to five years, and all trade at forward multiples he considers attractive relative to those growth rates. Evaluating your own signs of financial success before mirroring a concentrated hedge-fund strategy is worth the time, because PSUS has traded roughly 22% below its IPO price since debut.

Pershing Square USA raised $5 billion in the largest U.S. closed-end fund launch ever

Ackman priced the combined IPO of PSUS and parent Pershing Square Inc. (NYSE:PS) at $50 per share on April 28, with trading beginning the following day, Renaissance Capital confirmed. Cornerstone investors committed $2.8 billion under a six-month lock-up, and buyers received one PS share for every five PSUS shares purchased as a structural sweetener.

Ackman and Pershing Square management invested more than $500 million of their own capital into PSUS at the IPO and in subsequent market purchases, the SEC filing showed. The fund charges a 2% annualized management fee with no performance fee, a structure Ackman adopted after the failed 2024 listing attempt to make the vehicle more attractive to retail investors.

Microsoft, Meta, and Uber collectively hold 45.4% of the portfolio

Ackman's first shareholder letter after the launch revealed the three largest positions and the growth thesis behind each, the Motley Fool wrote. Key holdings and projected earnings growth rates include the following.

• Microsoft at 17.9% of assets, with 19% projected annual EPS growth and a 25x forward P/E.
• Meta Platforms at 14.7%, with 22% projected annual EPS growth and a forward P/E below 22.
• Uber Technologies at 12.8%, with 25% projected annual EPS growth and a forward P/E near 20.

Ackman described the market timing of the launch as fortunate, arguing that volatility during the spring gave him an opportunity to buy into these businesses at prices he considers cheap relative to their earnings trajectories. The combined 45.4% concentration in three names reflects a conviction-weighted approach most index fund investors would never choose on their own.

Microsoft anchors the fund on Copilot traction and $678 billion in contract backlog

Ackman argued that Microsoft 365 is more resilient to AI disruption than competing software suites, with Copilot surpassing 30 million paid subscribers and subscriber additions more than doubling sequentially, the Motley Fool detailed. Azure cloud revenue continues to accelerate, and remaining performance obligations across the software and cloud businesses totaled $678 billion.

Microsoft plans to spend $175 billion on capital expenditures during calendar 2026, a figure the backlog easily supports. At 25 times forward earnings and 19% projected EPS growth, Ackman views the stock as reasonably priced for a business generating that level of recurring revenue, though retirees should note the multiple exceeds the broader market average.

Meta Platforms draws Ackman's conviction as what he calls the clearest AI beneficiary

Meta's advertising revenue climbed 30% in the first half of 2026, up from 22% full-year growth in 2025, driven by AI improvements in recommendation algorithms that boost both ad impressions and price per ad, the Motley Fool wrote. The Meta AI chatbot reached one billion users through integration with Instagram and messaging apps.

Ackman expects 22% annual EPS growth over three to five years at a forward P/E below 22, a combination he described as cheap. Meta's Muse AI Agent, recently released to the public, and business chatbots for WhatsApp offer additional revenue streams that are not yet reflected in the earnings estimates Ackman is using to justify the position.

Uber's 12.8% position bets that autonomous vehicles need a demand aggregator

Ackman called Uber's valuation disconnected from its fundamentals, arguing that fears of autonomous vehicle disruption underestimate Uber's value as the leading demand aggregator for ride-sharing, according to the Motley Fool. Monthly active users grew 16%, trips per user climbed 2%, and gross bookings rose 24% in the most recent quarter.

Operating income surged 40% year over year, demonstrating the leverage in Uber's model as volume scales. Ackman projects 25% annual EPS growth at a forward P/E near 20, the lowest multiple among his three largest holdings, and he views autonomous vehicles as a market expander for Uber rather than a threat.

PSUS trades roughly 22% below its $50 IPO price since its April debut

PSUS closed at approximately $38.90 on September 19, a 22.2% discount to the $50 IPO price, Motley Fool ticker data showed. The fund opened 16% to 18% below its IPO price on day one and has not recovered, a pattern common among closed-end funds that trade at persistent discounts to their net asset value.

Ackman acknowledged the discount in an SEC filing, describing it as a "double discount" where investors buy the underlying stocks at reduced prices through a fund already trading below its NAV. For retirees, the discount means the market assigns less value to Ackman's concentrated strategy than the sum of its parts, a signal of hedge-fund conviction and retirement risk.

Bottom line

Ackman concentrated 45% of a record $5 billion closed-end fund launch into Microsoft, Meta, and Uber, projecting 19% to 25% annual earnings growth for each at forward multiples he considers cheap. The thesis rests on AI-driven software resilience, advertising acceleration, and autonomous vehicle demand aggregation, and all three businesses delivered strong recent quarters.

Before you start investing alongside a hedge-fund strategy, recognizing that PSUS trades 22% below its IPO price should inform how you evaluate the risk. Concentrated conviction works on a timeline that few retirement portfolios share, and the persistent discount to NAV suggests the broader market sees that mismatch clearly.

This article is for informational purposes only and should not be considered investment advice.

You May Also Like

Almost 80% of Americans Fear a Retirement Age Increase — Here’s the Real Reason Why

By FinanceBuzz Editors

10 Smart Money Moves to Retire Stress Free

By FinanceBuzz Editors

The Easiest Way to Diversify Your Investment Portfolio With Fine Art

By FinanceBuzz Editors

7 Brilliant Ways to Build Wealth After 40

By FinanceBuzz Editors

5 Ways Seniors Are Throwing Away Money

By FinanceBuzz Editors

Best High-Yield Savings Accounts of September 2026

By FinanceBuzz Editors

Help Protect Your Savings From Stock Market Volatility With Gold

American Hartford Gold Benefits

• American Hartford Gold helps individuals protect their retirement by rolling over IRAs and 401(k)s into physical gold.
• Includes FREE IRA rollover and storage for up to 3 years.
• Get up to $20,000 in free silver on qualifying purchases.

Download your guide for free

---

Subscribe Today

Learn how to make an extra $200

Get vetted side hustles and proven ways to earn extra cash sent to your inbox.

or

Subscribe Now →

By submitting this form you agree to receive emails from FinanceBuzz and to the privacy policy and terms