Bill Ackman, the renowned investor and founder of Pershing Square Capital Management, is known for his strategic investment decisions. Each quarter, institutional investment managers like Ackman are required to disclose their holdings through the SEC’s 13F filings. Below, we lost Pershing Square's Q1 2024 13F holdings and explore which stocks Bill Ackman sold, providing insights into his investment strategy and potential reasons behind these decisions.

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What stocks did Bill Ackman sell?

• Chipotle Mexican Grill, Inc. (CMG)
• Lowe's Companies, Inc. (LOW)

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Detailed Analysis of Pershing Square's Portfolio Changes

A look at the changes in Pershing Square's holdings, specifically focusing on the stocks that Bill Ackman sold.

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1. Chipotle Mexican Grill, Inc. (CMG)

· Q4 2023 Shares: 824,998

· Q1 2024 Shares: 743,984

· Change: -81,014 shares (-10%)

· Q4 2023 Value: $1,886,737,000

· Q1 2024 Value: $2,162,590,000

· Value Change: +$275,853,000 (+15%)

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2. Lowe's Companies, Inc. (LOW)

· Q4 2023 Shares: 1,245,515

· Q1 2024 Shares: 0

· Change: -1,245,515 shares (-100%)

· Q4 2023 Value: $277,189,000

· Q1 2024 Value: $0

· Value Change: -$277,189,000 (-100%)

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Why Did Bill Ackman Sell These Stocks?

Strategic Reallocation

Bill Ackman’s decision to reduce his stake in Chipotle Mexican Grill and completely sell out of Lowe's Companies may be part of a strategic reallocation of capital. Ackman might be reallocating funds to other investments with higher growth potential or better alignment with his investment thesis.

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Profit-Taking

The significant increase in the value of Chipotle Mexican Grill shares suggests that Ackman might have sold a portion to realize gains. The 15% increase in the value of the remaining shares indicates that the stock performed well, allowing Ackman to lock in profits while still maintaining a substantial position.

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Market Conditions and Valuation

Selling Lowe's Companies entirely might be influenced by market conditions or the company's valuation. If Ackman believed that Lowe's had reached or exceeded its fair value, it would make sense to exit the position and reallocate the capital to more undervalued opportunities.

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Remaining Holdings and Their Impact

While Ackman sold some shares of Chipotle Mexican Grill and all shares of Lowe's Companies, he retained positions in other companies. Here is a look at some of the significant holdings that remained unchanged:

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Hilton Worldwide Holdings Inc. (HLT)

· Shares: 9,181,180

· Q4 2023 Value: $1,671,801,000

· Q1 2024 Value: $1,958,437,000

· Value Change: +$286,636,000 (+17%)

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Restaurant Brands International Inc. (QSR)

· Shares: 23,348,135

· Q4 2023 Value: $1,824,189,000

· Q1 2024 Value: $1,855,009,000

· Value Change: +$30,820,000 (+2%)

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Alphabet Inc. (GOOG)

· Shares: 9,377,195

· Q4 2023 Value: $1,321,528,000

· Q1 2024 Value: $1,427,771,000

· Value Change: +$106,243,000 (+8%)

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Howard Hughes Corporation (HHH)

· Shares: 18,852,064

· Q4 2023 Value: $1,612,794,000

· Q1 2024 Value: $1,369,036,000

· Value Change: -$243,758,000 (-15%)

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Insights from Ackman's Investment Strategy

Ackman’s portfolio adjustments reflect a nuanced approach to value investing. By partially selling high-performing stocks and completely exiting others, he demonstrates a balance between profit-taking and strategic reallocation. Retaining significant positions in strong performers like Hilton Worldwide Holdings and Alphabet Inc. highlights his confidence in their long-term potential.

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FAQs

What is a 13F filing?

A 13F filing is a quarterly report required by the SEC from institutional investment managers with at least $100 million in assets under management, disclosing their equity holdings.

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Why do investors pay attention to 13F filings?

Investors scrutinize 13F filings to understand the holdings and investment strategies of prominent investors, gaining insights into market trends and potential investment opportunities.

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How often are 13F filings submitted?

13F filings are submitted quarterly, within 45 days after the end of each calendar quarter.

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What does it mean when an investor sells a stock?

When an investor sells a stock, it can indicate a variety of factors, including profit-taking, reallocation of capital, changes in market conditions, or reassessment of the stock’s valuation.

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Why did Bill Ackman sell Lowes Stock?

Bill Ackman sold Lowe's stock entirely, which might be due to reasons such as profit-taking, market conditions, or valuation assessment, leading to a complete reallocation of the invested capital.

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How can individual investors use 13F filings?

Individual investors can use 13F filings to gain insights into the investment strategies of successful investors, identify potential investment opportunities, and understand market trends.

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