Bill Ackman’s Pershing Square doubled down on bets on Nike and Brookfield in its concentrated portfolio last quarter. The high-profile investor significantly increased its investment in Nike in the third quarter, valuing the bet at $1.4 billion, according to a regulatory filing. As of the end of June, the bet was worth only about $220 million. Nike is undergoing a broader restructuring after shifting its strategy to selling directly to consumers. The sneaker giant has been preparing for company veteran Elliott Hill to return to take the helm. Just last month, Nike withdrew its full-year guidance and fell short of quarterly revenue targets even as it worked to repair its product assortment and redesign its approach to innovation. Nike stock has plunged more than 30% this year. Last quarter, Pershing Square also increased its bet on Brookfield to a value of $1.74 billion, making it its second-largest holding after Alphabet. Earlier this year, Microsoft signed an agreement with Brookfield Asset Management, a company controlled by the company, to invest more than $10 billion to develop renewable energy capacity to meet the growing demand for artificial intelligence and data centers. Brookfield’s portfolio also includes data center operators. In addition to these big moves, the hedge fund manager made slight changes to his holdings in Hilton Worldwide, Restaurant Brands and Canadian Pacific Kansas City, while keeping holdings of Alphabet, Chipotle and Howard Hughes unchanged.
