Pershing Square Holdings, an investment holding company, released its fourth quarter 2023 investor letter. A copy of the same can be downloaded here. During the year, the fund generated a NAV performance of 26.7% versus 26.3% for the principal benchmark the S&P 500 index. In 2023, the portfolio companies performed exceptionally well, significantly increasing their stock prices. Portfolio companies sustained growth in revenue, profitability, and shareholder value despite two conflicts and a prolonged increase in interest rates. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Pershing Square Holdings featured stocks like Canadian Pacific Kansas City Limited (NYSE:CP) in the fourth quarter 2023 investor letter. Headquartered in Calgary, Canada, Canadian Pacific Kansas City Limited (NYSE:CP) owns and operates a transcontinental freight railway. On March 26, 2024, Canadian Pacific Kansas City Limited (NYSE:CP) stock closed at $87.26 per share. One-month return of Canadian Pacific Kansas City Limited (NYSE:CP) was 2.59%, and its shares gained 14.80% of their value over the last 52 weeks. Canadian Pacific Kansas City Limited (NYSE:CP) has a market capitalization of $81.374 billion.
Pershing Square Holdings stated the following regarding Canadian Pacific Kansas City Limited (NYSE:CP) in its fourth quarter 2023 investor letter:
“Canadian Pacific Kansas City Limited (NYSE:CP) is a high-quality, inflation-protected, unique North American railroad that operates in an oligopolistic industry with significant barriers to entry. In 2023, Canadian Pacific made history when it closed the acquisition of Kansas City Southern and renamed the combined company Canadian Pacific Kansas City, creating the only railroad with a direct route connecting Canada, the United States, and Mexico. This transformative acquisition will generate substantial long-term shareholder value as well as create competitive options for shippers and reduce greenhouse gas emissions by converting trucks to rail transportation.
In the 11 months since the acquisition closed, CPKC has already realized $350 million of run[1]rate revenue synergies, exceeding management’s expectations, despite a soft demand environment. Broad-based contract wins across end markets including chemicals, automotive, and cross-border intermodal demonstrate the attractiveness of the company’s unique service product.
CPKC is also ahead of plan on realizing cost synergies as the team successfully integrates the two networks after overcoming some operational challenges in Mexico. We believe CPKC is well on its way to achieving management’s goal to more than double the company’s earnings per share by 2028 while holding capital expenditures at current levels. We continue to believe that CPKC’s one-of-a-kind network and superb team are well positioned to deliver profitable long-term growth in the coming years.”
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Canadian Pacific Kansas City Limited (NYSE:CP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, Canadian Pacific Kansas City Limited (NYSE:CP) was held by 49 hedge fund portfolios, compared to 52 in the previous quarter, according to our database.
We discussed Canadian Pacific Kansas City Limited (NYSE:CP) in another article and shared the list of best Canadian stocks to buy for 2024. In addition, please check out our hedge fund investor letters Q4 2023 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
