Billionaire Bill Ackman Just Invested 10% of Pershing Square Capital Management's $20 Billion Portfolio in 1 Unstoppable Artificial Intelligence (AI) Stock

Billionaire Bill Ackman is thing of a fable successful investing circles. The activistic capitalist heads up Pershing Square Capital Management -- the hedge money helium founded -- with astir $20 cardinal successful assets nether management.

His strategy, which involves acquiring sizable positions successful conscionable a fewer stocks and holding them for years, has been remarkably successful. Pershing Square returned 34% successful 2025, astir treble the show of the S&P 500. That's not a one-off. Over the past 8 years, Pershing has returned 23% annually, acold outpacing the S&P's 14% gains.

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When Ackman adds a banal to Pershing's portfolio, it tends to pull a batch of attention. This week was nary antithetic erstwhile helium revealed a sizable involvement successful artificial quality (AI) and societal media elephantine Meta Platforms (NASDAQ: META).

Ackman revealed the presumption successful an capitalist presumption connected Pershing's website. The involvement successful Meta is worthy astir $2 billion, oregon astir 10% of the hedge fund's $20 cardinal portfolio.

The hedge money manager lays retired a compelling lawsuit for owning Meta stock. Ackman points retired that the societal media elephantine is simply a "dominant person successful the secularly fast-growing integer advertizing space," with an "entrenched planetary idiosyncratic basal of much than 3.5 cardinal regular progressive users." He goes connected to 4 cardinal pillars of his investing thesis:

• A high-quality advertizing concern exemplary with expanding returns to scale

• Meta's concern exemplary is 1 of the clearest beneficiaries of AI integration

• It's well-positioned for semipermanent net maturation aft its planned spending ramp successful 2026

• It has a beardown equilibrium expanse and a high-margin halfway business, providing important fiscal flexibility.

Meta banal has been 1 of the undisputed winners of the AI era, returning 450% since aboriginal 2023. However, the banal has been stuck successful neutral implicit the past twelvemonth arsenic concerns astir dense spending to capitalize connected AI person weighed connected the stock. In the 4th quarter, CFO Susan Li said the institution planned superior expenditures of betwixt $115 cardinal and $135 cardinal successful 2026, an summation of 73% twelvemonth implicit twelvemonth astatine the midpoint of its guidance.

Ackman believes these fears are overblown. "We judge concerns astir Meta's AI-related spending initiatives are underestimating the company's semipermanent upside imaginable from AI," helium wrote.