Bill Ackman recently loaded this S&P 500 stock into his FTSE 100 index fund
Pershing Square (LSE:PSH) is a FTSE 100 an investment trust invested in a small minority S&P 500 shares. In theory, this makes it riskier than your average wallet.
In fact, CEO Bill Ackman has made incredible gains with this high-belief strategy. Last year, Pershing Square delivered a total shareholder return of 33.9%.
That was significantly higher than both the S&P 500 (17.9%) and the FTSE 100 (25.7%). And since Ackman restructured the fund, the eight-year return has been 23% versus the S&P 500’s 14.3%.
Pershing Square’s stock price has risen nearly 300% since its IPO in 2017.
Image source: Meta Platforms
Putting money to work
As mentioned, Ackman is not a fan of wide diversification. As of early 2026, his top five holdings make up about 73% of the entire portfolio.
These are global businesses with deep trenches and strong brands like Amazon, Uber, Alphabetsand a hotel group Hilton Worldwide.
Obviously, given Ackman’s track record, it’s worth keeping an eye on what he’s buying. And back in November, Pershing said “to see the highest quality businesses at the most attractive prices“. He was ready to put “some money to work“.
At the time, I thought Ackman might buy Meta Platforms (NASDAQ:META). The millionaire likes to acquire stocks when they are no longer popular and the Meta is down 20% since August. In addition, it was the cheapest stock of the Magnificent Seven.
Last week, Pershing revealed that it had indeed bought Meta stock. In Q4, it acquired shares worth $1.76bn, giving the social media giant a portfolio position of 11.37%.
Should I follow Ackman and invest?
Superintelligence push
Meta forums need no introduction. Facebook, Instagram and WhatsApp are woven into the everyday reality of many people around the world. By the end of 2025, the value was 3.58bn users.
When you work at such a scale, the opportunity for advertising is huge. In Q4, ads served across all apps jumped 18%, with the average price per ad up 6%.
This helped drive $201bn in revenue by 2025, an annual increase of 22%. The operating margin was 41%, which shows how profitable Meta is.
However, while I see the obvious quality of the business, I have some concerns. First, CEO Mark Zuckerberg will do everything possible “personal intelligence for people around the world“.
This will see Meta spend up to $135bn on AI by 2026 – significantly more than the company’s free cash flow last year ($43.6bn).
Writing this, I’m having flashbacks to 2021/22 when Meta entered the entire metaverse, and even changed the company name to reflect that move. But this company Reality Labs has been a money-burner so far, and I fear that AI may not justify this overspending.
Another issue is the growing move by governments to restrict social media for under 16s, including in the UK. This could see Facebook and Instagram lose relevance among younger generations.
Deep discount
Ackman disagrees, however. He said:We believe that Meta’s current share price does not adequately cover the company’s long-term potential from AI and represents a deep discount.“.
He may prove himself right, but I’m not buying it. I prefer Pershing Square itself, as it trades at a 23% discount to the value of all assets.
I think the FTSE 100 trust is worth considering for investors who believe in Ackman’s bullish strategy.
