Bill Ackman is a famous billionaire whose hedge fund Pershing Square is making a strong comeback, gaining over 36% (as of March 31) in 2019. These gains come during a time in which hedge funds are facing declines. In this article, we will take a look at the most favorite stocks of Bill Ackman by analyzing Pershing Square’s 13F filings for the fourth quarter of 2018.
Lowe’s Companies, Inc. (NYSE: LOW)
Pershing added about 1.1 million shares of Lowe’s Companies, Inc. (NYSE: LOW) to its portfolio in the fourth quarter of 2018. The company now owns $880.8 million worth of the company’s shares. The company recently reported fourth-quarter results, posting a revenue of $15.6 billion, a 1% increase year over year. Lowe’s is facing resistance, including increased competition amid a massive shift of retail to online. The company is focusing on online sales. In the quarter, Lowe’s online sales increased by 11% year over year. The company is also expanding its home improvement business, taking on giants like Home Depot.
Hilton Hotels Corporation Common Stock (NYSE: HLT)
Bill Ackman amassed over 10.95 million shares of Hilton Hotels Corporation Common Stock (NYSE: HLT) in the fourth quarter of 2018. The total worth of the firm’s stake in the company is $786 million. The Virginia-based hotel chain recently came into the limelight after Jefferies issued a bullish note for the company’s Q4 results. Jefferies analyst David Katz said that the company’s guidance shows that it will achieve its targets. The analyst also believes that the guidance “de-risks” the stock for the future.
Starbucks Corporation (NASDAQ: SBUX)
Bill Ackman loaded up on Starbucks in the fourth quarter. The billionaire’s fund bought 11.75 million new shares of the company. The stake has a net worth of $756.98 million. In January, Starbucks surprised the market by announcing a 4% jump in comp sales for the fourth quarter. In China, comp sales rose 1%. Out of the company’s total store openings in 2018, 65% were outside of the U.S. The company has a solid growth potential internationally. KeyBanc Capital Markets Eric Gonzalez thinks that Starbucks new CEO’s strategy is working. The analyst believes that the new management “reinvigorated” digital growth at the coffee chain using strategies like Wi-fi sign-ups and guest check-outs.
United Technologies Corporation (NYSE: UTX)
Pershing increased its stake in United Technologies by 12% in the fourth quarter, ending the period with 5.57 million shares of the company. United has a strong dividend yield of 2.32%, versus the Diversified Operations industry’s yield of 1.39%. The company recently announced that it will be splitting itself into three different enterprises: Aerospace: Elevators and Carrier. Analysts believe that the company will become nimbler and profitable after this key move.
The author does not have an investment in stock discussed in this article.