15 Most Feared Activist Hedge Funds

3. Pershing Square

Portfolio Size: $10.76 billion

Established in 2004, Pershing Square Capital Management is a prominent hedge fund engaged in activist investment. Bill Ackman is the brainchild behind the New York City-based hedge fund, known for its activist investment approach. From the beginning, Pershing Square adopted a concentrated investment approach, maintaining a small number of holdings to facilitate thorough examination and direct interaction with the companies in its portfolio.

Its portfolio worth $10.76 billion is heavily invested in the services sector in the equity markets, with technology stocks accounting for 19.4% of the portfolio. The hedge fund returned 26.7% last year, beating the broader market and improving from an 8.8% loss recorded in 2022. Some of the hedge fund’s notable campaigns have been at Herbalife Nutrition Ltd. (NYSE:HLF), Zoetis Inc. (NYSE:ZTS), and Valeant Pharmaceuticals Intl Inc (NYSE:VRX).

Ackman is widely known for his $1 billion wager on Herbalife Nutrition Ltd. (NYSE:HLF), a nutritional company he called a pyramid scheme. His strategy is marked by his readiness to invest significant sums in thorough fundamental analysis and a solid belief in his evaluations of a company’s worth.