10% position, $2 billion heavy bet! Bill Ackman "bottom-fishing" Meta

Famous hedge fund manager Bill Ackman bets that Meta can win in the artificial intelligence race. His firm, Pershing Square, has established a position of about $2 billion in Meta, accounting for 10% of its fund capital, making it one of the company's largest holdings.

According to The Wall Street Journal, Pershing Square disclosed this investment at its annual investor meeting on Wednesday. The company began building its position in Meta last November, with an average cost of $625 per share. At that time, investors were concerned about Meta's massive spending in the AI field, leading to a decline of about 13% in its stock price over the past six months, which created an entry opportunity for Pershing Square.

Pershing Square believes that Meta's business model is one of the clearest beneficiaries of AI integration. The fund stated in its investor presentation that AI will enhance Meta's content recommendation and personalized advertising capabilities and may open new opportunities in the wearable devices or enterprise AI digital assistant fields.

As of Wednesday's close, Meta's stock price was $669, having risen about 14% since Pershing Square built its position. However, unlike the market reaction to Ackman's previous investments, Meta's stock price remained basically flat on the day the position was disclosed, whereas Ackman's investment in rental car company Hertz last April triggered a stock price surge of over 50%.

Continuation of Concentrated Investment Style

Ackman is known for his highly concentrated portfolio. As of the end of 2025, Pershing Square holds only 13 stocks, including other large tech companies like Alphabet and Amazon. In recent months, the fund has liquidated two long-term holdings—Chipotle Mexican Grill and Hilton Worldwide.

Meta has become the fund's third-largest tech stock holding. This allocation reflects Ackman's preference for a few high-conviction targets rather than a diversified investment strategy.

Pershing Square Holdings achieved a return of 20.9% last year, surpassing the S&P 500 index's total return of 17.9%. Alphabet, Fannie Mae, and Freddie Mac were its main contributors. However, the fund fell 2.5% in January this year.

From the time of building its position in Meta until the end of 2025, the stock rose 11%, and it increased another 3% as of February 9 this year. This performance has supported Pershing Square's overall returns.

In addition to Meta, Pershing Square made other significant investments in 2025. The fund invested $900 million in real estate company Howard Hughes Holdings and provided up to $1 billion in support for its acquisition of insurance company Vantage Group Holdings It is worth mentioning that Ackman is a follower of Warren Buffett, and he hopes to transform Howard Hughes into a diversified holding company similar to Berkshire Hathaway. This strategy shows that his investment vision has gone beyond simple stock selection and has shifted towards a deeper corporate value reconstruction