Pershing Square Capital Management, the hedge fund led by billionaire activist investor Bill Ackman, has initiated a new position in Amazon, while exiting Canadian Pacific, as part of a broader portfolio reshuffle, according to a report by Reuters.
The report cites Pershing Square’s Chief Investment Officer Ryan Israel, while speaking on a client call, as describing Amazon as the fund’s “most substantial move” in recent months, entering the position in April following a pullback in the stock prompted by concerns over trade tariffs introduced by US President Donald Trump. The team viewed the weakness as a buying opportunity.
“We felt Amazon could navigate near-term pressures on its cloud segment, and that tariffs wouldn’t materially impact retail earnings,” Israel said. He also pointed to CEO Andrew Jassy’s operational improvements as a driver for future margin expansion amid continued revenue growth.
The tech giant, now valued at over $2tn, has long featured on Ackman’s watchlist of high-quality businesses, but had remained outside Pershing Square’s portfolio until valuation conditions aligned.
To fund the new investment, Pershing Square exited its position in Canadian Pacific, one of Ackman’s historically successful trades. The firm had re-entered the rail operator in 2022 amid themes of onshoring and decarbonisation, but made the sale reluctantly, citing capital allocation needs.
“It’s a company we still have high conviction in,” Ackman told investors, calling Canadian Pacific’s leadership team “exceptional.”
Pershing Square also added Hertz and Uber to the portfolio and trimmed exposure to names such as Chipotle Mexican Grill, Hilton Worldwide, and Universal Music Group. In a tactical move, the fund converted its Nike equity position into deep-in-the-money call options, signalling a cost-efficient strategy to maintain upside exposure.
