Pershing Square Holdings, an investment holding company, released its first half 2023 investor letter. A copy of the same can be downloaded here. The fund generated NAV performance of 10.0% during the first half of 2023 and a total shareholder return of 5.4% due to the widening of discount to NAV at which PSH’s shares trade. Year-to-date, PSH’s NAV return through August 15, 2023, was 13.1% compared to 16.8% for the S&P 500 index. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Pershing Square Holdings highlighted stocks like Alphabet Inc. (NASDAQ:GOOG) in the first half 2023 investor letter. Headquartered in Mountain View, California, Alphabet Inc. (NASDAQ:GOOG) is a multinational technology company. On September 1, 2023, Alphabet Inc. (NASDAQ:GOOG) stock closed at $136.80 per share. One-month return of Alphabet Inc. (NASDAQ:GOOG) was 6.43%, and its shares gained 25.87% of their value over the last 52 weeks. Alphabet Inc. (NASDAQ:GOOG) has a market capitalization of $1.717 trillion.
Pershing Square Holdings made the following comment about Alphabet Inc. (NASDAQ:GOOG) in its first half 2023 investor letter:
“Earlier this year, we initiated a position in Alphabet Inc. (NASDAQ:GOOG), the parent company of Google. We believe that Google is one of the world’s greatest businesses with deep barriers to entry and massive network effects underpinning its core search business. After having closely followed the company for many years, we had the opportunity to acquire a stake in Google at a highly attractive valuation as misplaced concerns over its competitive positioning in AI overshadowed the high-quality nature of its business and its strong growth prospects.
Google is the dominant leader in the fast-growing digital advertising market. Google has 85%+ market share in search and, along with YouTube, approximately 50% share of the digital advertising market. With higher and improving returns on investment, we expect digital ads to continue to take market share from traditional ad formats like TV and print, and increasingly drive the total advertising market growth above its historical trend. For example, in retail, rising e-commerce penetration is catalyzing the migration of offline promotion and trade spend dollars into digital ads. With Search and YouTube as two of the highest return and most resilient ad formats, Google is well positioned to benefit from the structural growth in digital ad share across many categories.
Similarly, in its Cloud business, Google is a top three player in an oligopolistic market that is in the early stages of a multi[1]year shift of IT workloads from on-premise to cloud and hybrid cloud solutions. These powerful secular tailwinds have enabled Google to grow overall revenues at a high-teens compound annual growth rate over the last five years which should continue to support near- double-digit top-line growth in the coming years…” (Click here to read the full text)
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Alphabet Inc. (NASDAQ:GOOG) is in 6th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 152 hedge fund portfolios held Alphabet Inc. (NASDAQ:GOOG) at the end of second quarter which was 155 in the previous quarter.
We discussed Alphabet Inc. (NASDAQ:GOOG) in another article and shared the list of biggest generative AI companies in the world. In addition, please check out our hedge fund investor letters Q2 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.
