How One of the Biggest Hedge Funds Concentrates 75% of Its Wealth Into Just Five Market Bets

Among the biggest hedge funds operating today, few operators have demonstrated the conviction to concentrate their capital as boldly as Bill Ackman. The billionaire investor—with a net worth of $9.3 billion and ranked among the world’s wealthiest people—built Pershing Square Capital Management into one of the largest investment vehicles globally, currently managing $19 billion in assets.

What sets Ackman apart from other prominent fund managers is his willingness to make concentrated bets. His fund owns shares in just 15 large-cap companies, yet a staggering 75% of the $15 billion stock portfolio sits in five core holdings. This approach reflects Ackman’s strict investment philosophy: he pursues only high-quality businesses trading below their intrinsic value, while often taking activist positions to unlock shareholder value.

The Strategy Behind Pershing Square’s Portfolio Concentration

Ackman founded Pershing Square in 2004 with $54 million in initial capital. Over two decades, the fund evolved into one of the biggest hedge funds for good reason—the founder’s disciplined capital allocation. Rather than diversifying broadly, Ackman applies rigorous fundamental analysis to identify businesses with sustainable competitive advantages, strong cash generation, and limited downside risk.

His preference for concentration stems from conviction. When Ackman identifies a high-quality business trading below fair value, he builds meaningful positions. This strategy allows deeper involvement with portfolio companies, enabling the activist investor to influence operational decisions and corporate governance when necessary.

The fund currently deploys approximately $15 billion across equities, with its top five positions representing the bulk of capital deployment. This concentrated approach requires high confidence in each holding’s long-term value creation potential.

Uber Technologies: Capturing the Mobility Revolution

Ackman initiated his position in Uber Technologies in early 2025, accumulating 30.3 million shares of the ride-sharing and delivery marketplace giant. The position comprises 19.6% of the portfolio, making it the largest holding.

Ackman’s thesis centers on Uber’s structural advantages: a powerful network effect that creates competitive moats, proven management execution, and strong operational cash flow generation. The company’s capital-light model—where franchised drivers and merchants do the heavy lifting—produces outsized cash returns. Uber’s active share buyback program further demonstrates management’s commitment to rewarding shareholders.

Notably, Ackman views autonomous vehicles not as a threat but as an expansion opportunity. He believes self-driving technology will extend Uber’s addressable market rather than disrupt it. With Uber trading at attractive valuations relative to its growth prospects, he anticipates 30%+ annual earnings-per-share growth, which should support sustained stock appreciation.

Brookfield Corporation: Capitalizing on AI Infrastructure Demand

In 2024, Ackman added Brookfield Corporation (representing 17.7% of the portfolio) after identifying compelling value amid accelerating earnings momentum. The company holds a 73% stake in Brookfield Asset Management, one of the world’s largest alternative asset managers overseeing $1 trillion globally across infrastructure, renewable energy, real estate, and private markets.

Beyond asset management, Brookfield owns a significant insurance and wealth solutions division managing $135 billion in assets. The business operates two powerful growth engines: surging demand for artificial intelligence infrastructure investments, and demographic-driven wealth management needs from aging populations. Management’s target for 15% compound annual returns over decades suggests substantial room for outperformance versus the S&P 500—a benchmark Brookfield has consistently beaten historically.

Alphabet’s AI Integration and Search Dominance

Ackman began accumulating Alphabet shares in 2023 and continues to add to the position (14.4% of portfolio). Google’s parent company is aggressively embedding AI across its ecosystem—from AI-powered search responses to YouTube enhancements and the rapidly growing Google Cloud division.

Recent financial results underscore the company’s momentum. Alphabet just reported $100 billion in quarterly revenue for the first time, alongside 33% year-over-year profit growth. Google Cloud alone ended the quarter with a $155 billion backlog of committed work. With 90% search market dominance and early-mover advantages in AI assistant deployment (Gemini), Alphabet possesses structural advantages that Ackman believes remain underappreciated by the broader market.

Howard Hughes Holdings: Restructuring Into a Conglomerate

Ackman’s deepest involvement comes through Howard Hughes Holdings (13.4% of portfolio), where he has been instrumental since the company’s 2010 formation. The firm owns and develops master-planned communities across the United States.

Earlier this year, Pershing Square acquired an additional 15% stake, raising its ownership to 47%. Ackman assumed the executive chairman role while his partner Ryan Israel took the chief investment officer position. Their vision: transform Howard Hughes into a diversified holding company along Berkshire Hathaway lines.

The strategy begins with acquiring a property-casualty insurance company—a self-funding business with strong return potential. Ackman aims to unlock value from the company’s substantial real estate portfolio while building a collection of high-returning reinvestment businesses. This approach mirrors Warren Buffett’s conglomerate model of compounding intrinsic value over decades.

Restaurant Brands: Franchising Economics at Scale

The final major position, Restaurant Brands (10.6% of portfolio), demonstrates Ackman’s appreciation for capital-efficient business models. The company operates four iconic brands—Burger King, Tim Hortons, Popeyes, and Firehouse Subs—through a royalty-and-fee franchise structure requiring minimal capital deployment.

Tim Hortons and the international Burger King business drive approximately 70% of earnings. Management is investing aggressively through 2028 to revitalize domestic Burger King through restaurant remodeling, digital technology, and marketing. Simultaneously, Tim Hortons is expanding its food and cold beverage offerings while Burger King pursues international growth through localized menus and digital-first strategies.

With the company strengthening its financial foundation, Ackman sees meaningful upside as the franchise model compounds earnings without requiring proportional capital expenditure.

Lessons From One of the Biggest Hedge Funds’ Strategy

Pershing Square’s concentrated portfolio structure challenges conventional diversification dogma. By deploying 75% of capital into five carefully selected positions, Ackman demonstrates that conviction-driven capital allocation can outperform passive, wide-net approaches—provided the underlying analysis proves sound.

The portfolio composition reveals a coherent investment thesis: businesses with durable competitive advantages, strong cash generation, and activist-influenced value creation potential. For investors evaluating their own allocation strategies, the biggest hedge funds’ approaches offer instructive examples of how disciplined concentration—coupled with rigorous fundamental research—can drive superior long-term wealth accumulation.