Panxing Plaza Q2 Holdings: Nike purchased for the first time in a big way, reduced holdings of Chipotle Mexican Grill and Alphabet

According to Zhitong Finance, Bill Ackman, the hedge fund tycoon, released the second-quarter holdings report (13F) of his Pershing Square Capital Management company. The total market value of Pershing Square in the second quarter was $10.4 billion, down 4.7% from the previous quarter's total market value of $10.8 billion. In the second quarter, Pershing Square added 2 stocks to its portfolio, increased its holdings in 3 stocks, liquidated 0 stocks, and reduced its holdings in 6 stocks. The top ten holdings accounted for 100% of the total market value.

An article on August 3rd reported that Ackman's main Pershing Square fund wiped out most of its 2024 gains in the second half of July. However, over the past 20 years or so, it has delivered returns exceeding the market. Ackman canceled Pershing Square's initial public offering (IPO) plan in the United States at the end of July. Previously, the company's financing target was reduced from an initial $25 billion to $2 billion before the IPO was canceled.

In the top five major holdings, Hilton Hotels (HLT.US) ranked first with approximately 8.952 million shares, a holding market value of about $1.953 billion, accounting for 18.5% of the investment portfolio, a decrease of 2.49% in the number of shares held compared to the previous quarter;

Chipotle Mexican Grill (CMG.US) ranked second with approximately 28.815 million shares, a holding market value of about $1.805 billion, accounting for 17.09% of the investment portfolio, a decrease of 22.54% in the number of shares held compared to the previous quarter;

Restaurant Brands International (QSR.US), the parent company of Burger King, ranked third with approximately 23.523 million shares, a holding market value of about $1.758 billion, accounting for 16.65% of the investment portfolio, an increase of 1.65% in the number of shares held compared to the previous quarter;

Alphabet-C (GOOG.US) and Canadian Pacific Railway (CP.US) ranked fourth and fifth, with holding market values of $1.384 billion and $1.178 billion, accounting for 13.11% and 11.16% of the holdings, respectively.

In terms of changes in holdings, the top two new purchases were Brookfield (BN.US) and Nike (NKE.US), which were purchased by the hedge fund for the first time The top three selling targets are: Chipotle Mexican Grill, international dining brand, and Canadian Pacific Railway. It is worth noting that the fund significantly reduced its holdings of both Google's two stocks, Alphabet-A and Alphabet-C.

Of particular note, the company added approximately 3 million shares of Nike stock in the second quarter, worth $229 million, despite facing a sales decline. Nike's stock rose 5.5% in after-hours trading on Wednesday and has fallen nearly 28% year-to-date as of Wednesday's close.

Wall Street questions whether activist investors will become more involved in Nike's affairs. In June of this year, Nike had its worst day ever when management forecasted a revenue decline for the fiscal year. Ackman stated in 2022 that he would no longer be a high-profile corporate agitator but would take a "quieter approach" to management.

Pershing Square's filings did not indicate whether the company intends to change Nike. Nike's board is controlled by Nike co-founder Phil Knight, who along with his son Travis, owns nearly all of the outstanding voting shares.

Pershing Square had previously invested in Nike and made a profit of $100 million within a few months after cashing out of its passive holdings in 2018