Pershing Square USA Ltd. (NYSE:PSUS) CEO Bill Ackman announced that he has deployed nearly 85% of capital from his closed-end fund, seizing on a bifurcated market to buy tech behemoths like Meta Platforms Inc. (NASDAQ:META) and Microsoft Corp. (NASDAQ:MSFT) that investors are dismissing as “old-fashioned.”
Since its April 29 initial public offering, PSUS has been on an aggressive buying spree.
According to an update Ackman shared on X on Monday, the fund has built major positions in 12 companies—including Amazon.com Inc. (NASDAQ:AMZN), Uber Technologies Inc. (NASDAQ:UBER), Brookfield Corp. (NYSE:BN), and Restaurant Brands International Inc. (NYSE:QSR)—at what he called “extremely attractive” prices.
The portfolio will also feature four newly acquired, undisclosed companies set to be revealed in the firm’s upcoming second-quarter report.
Chasing ‘Old-Fashioned’ Value
While the broader market fixates on semiconductor hype and emerging startup IPOs, Ackman is finding immense value in established mega-caps. Speaking at the All-In Liquidity Summit with NYSE, he noted that market momentum has unfairly shifted away from foundational tech leaders.
“A lot of attention has been taken away from companies that people think are almost old-fashioned,” Ackman explained to the summit crowd.
“Meta is an old-fashioned company today. Microsoft is an old-fashioned company today, and therefore, they’re less interesting. That’s not where the excitement is. The result of that is, you know, those stocks are very cheap,” he explained.
Ackman capitalized on this shifting sentiment, pointing out that his fund is now heavily invested in the “highest quality durable growth companies in the world,” which he believes are trading near historic valuation lows.
The ‘Double Discount’ Opportunity
Despite its high-quality underlying portfolio, the PSUS stock, which is a closed-end listed fund, has lagged since its debut, currently trading at a roughly 20% discount to its net asset value (NAV) due to what Ackman attributes to short-term IPO technical factors.
However, the billionaire investor views this slump as a rare entry point. “A buyer of the stock at today's price is acquiring the current portfolio at a double discount,” Ackman stated.
To prove his conviction, Ackman and his Pershing Square affiliates have gone “all-in,” acquiring more than 10 million shares—totaling over $500 million—in the open market and IPO. “We have put our money where our mouth is,” he declared.
PSUS Drops Over 5% Since Listing
The stock has declined by 5.69% since its listing in April. However, it was up 4.26% over the last five sessions and 4.25% lower over the last month. It was up by 3.05% in premarket on Tuesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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