Renowned investor Bill Ackman recently submitted his 13F report for the second quarter of 2023, providing insights into his firm's investment activities during this period. Ackman, known for his value-oriented investment philosophy, manages a portfolio that contained eight stocks with a total value of $10.82 billion as of the end of Q2 2023.
The top three holdings in Ackman's portfolio were Chipotle Mexican Grill Inc. (CMG, Financial) with 18.86% of the portfolio, Restaurant Brands International Inc. (QSR, Financial) with 16.73%, and Lowe's Companies Inc. (LOW, Financial) with 15.58%.
Key Trades of the Quarter
During the second quarter, Ackman made significant changes to his holdings in Lowe's Companies Inc., Alphabet Inc., and Chipotle Mexican Grill Inc.
Lowe's Companies Inc (NYSE:LOW)
Ackman reduced his investment in Lowe's Companies Inc. by 2,567,264 shares, impacting the equity portfolio by 5.02%. The stock traded at an average price of $207.87 during the quarter. As of August 14, 2023, Lowe's had a market cap of $132.37 billion and a stock price of $225.89, reflecting a year-on-year return of 11.64%. GuruFocus rates Lowe's financial strength and profitability at 5/10 and 9/10, respectively. The company's valuation ratios include a P/E ratio of 22.00, a PEG ratio of 0.96, an EV-to-Ebitda ratio of 13.89, and a P/S ratio of 1.45.
Alphabet Inc (NAS:GOOG)
Ackman purchased 1,307,425 shares of Alphabet Inc., bringing his total holding to 9,377,195 shares. This trade had a 1.46% impact on the equity portfolio. The stock traded at an average price of $115.57 during the quarter. As of August 14, 2023, Alphabet had a market cap of $1,658.04 billion and a stock price of $131.83, reflecting a year-on-year return of 7.46%. GuruFocus rates Alphabet's financial strength and profitability at 9/10 and 10/10, respectively. The company's valuation ratios include a P/E ratio of 27.93, a P/B ratio of 6.20, a PEG ratio of 1.10, an EV-to-Ebitda ratio of 17.46, and a P/S ratio of 5.95.
Chipotle Mexican Grill Inc (NYSE:CMG)
Ackman reduced his investment in Chipotle Mexican Grill Inc. by 75,578 shares, impacting the equity portfolio by 1.26%. The stock traded at an average price of $1973.55 during the quarter. As of August 14, 2023, Chipotle had a market cap of $51.04 billion and a stock price of $1850.08, reflecting a year-on-year return of 11.22%. GuruFocus rates Chipotle's financial strength and profitability at 6/10 and 9/10, respectively. The company's valuation ratios include a P/E ratio of 46.21, a P/B ratio of 18.45, a PEG ratio of 1.82, an EV-to-Ebitda ratio of 30.22, and a P/S ratio of 5.53.
In conclusion, Ackman's Q2 2023 13F filing reveals a strategic approach to portfolio management, with significant trades in Lowe's, Alphabet, and Chipotle. These trades reflect Ackman's value-oriented investment philosophy and his ability to identify opportunities in various market conditions.
