Bill Ackman, the prominent billionaire investor and founder of Pershing Square Capital Management, has long been known for his activist approach. Recent portfolio disclosures, however, shed light on two significant Canadian equity holdings that underscore a focus on deep value and durable brand strength.
While Ackman has substantially reduced his position in Canadian Pacific Kansas City Railway, two Canadian companies remain prominently featured in the Pershing Square portfolio: financial conglomerate Brookfield Corp. (TSX:BN) and fast-food heavyweight Restaurant Brands International Inc. (TSX:QSR).
Brookfield Corp., a global giant with sprawling operations in asset management, insurance, private equity, real estate, renewable energy, and infrastructure, stands as the second-largest holding in Pershing Square’s portfolio.
According to the fund’s disclosed investment thesis, the core conviction lies in Brookfield’s significant valuation discount and future earnings potential. Pershing Square argues that the aggregate market value of Brookfield’s numerous publicly-listed subsidiary stakes exceeds the parent company’s own market capitalization, creating a notable “sum-of-the-parts” (SOTP) valuation gap. This appeal is further strengthened by Brookfield’s minimal corporate-level debt.
Although Brookfield’s share price has doubled from its 2023 lows—potentially narrowing the discount—Pershing Square’s investment case is forward-looking. A key part of the thesis hinges on Brookfield’s substantial pool of un-deployed committed capital. As this capital is put to work in fee-generating investments, it is expected to significantly boost the company’s earnings, potentially catalyzing a market re-rating and driving the next leg of share price appreciation.
The other Canadian company retaining Ackman’s favor is Restaurant Brands International, the parent company of Burger King, Tim Hortons, and Popeyes Louisiana Kitchen.
The investment rationale appears centered on several compelling factors:
The holdings of top investors like Ackman are often scrutinized for market signals. His sustained positions in these two Canadian firms highlights a strategic preference for companies with solid asset bases, identifiable valuation advantages, and clear growth trajectories. Market watchers note, however, that while such disclosures provide insight, they should complement, not replace, thorough independent investment analysis.
