When it comes to investing pedigree, Bill Ackman has earned his stripes. The well-known activist investor heads up Pershing Square Capital Management -- the hedge fund he founded -- with roughly $23 billion in assets under management. His hedge fund strategy is unique.
He acquires sizeable stakes in just a few stocks and holds them for years. That approach has been remarkably successful. Pershing Square gained 34% in 2025, doubling the 17% gains of the S&P 500.
Over the past eight years, Pershing has returned 23% annually, far outpacing the S&P's 14% gains. This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia.
For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue » Thanks to his impressive track record, investors pay close attention when Ackman adds a stock to Pershing Square's portfolio. He turned heads this week when he revealed a sizeable stake in streaming giant Netflix (NASDAQ:NFLX).
Investors are taking a fresh look at this well-known company and asking themselves the quintessential investing question: Is it time to buy Netflix stock? Ackman unveiled the news in a shareholder letter on Pershing's website. The billionaire reportedly owns 3.15 million Netflix shares, representing 4.9% of the hedge fund's portfolio, acquired during what was a tumultuous second quarter for the streamer.
The hedge fund manager shares a compelling case for owning Netflix stock. Ackman points out that Netflix is a "dominant global streaming platform with over 325 million subscribers," which is "nearly double the combined base of its two closest competitors, Disney+ and [Warner Bros. Discovery's] HBO Max." Furthermore, he cites several key points of his investing thesis: Netflix can outspend rivals on content while spreading the cost across the industry's largest user base.
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