Pershing Square Capital Management, the investment vehicle of prominent activist investor Bill Ackman, has liquidated its long-standing position in Hilton Hotels and redirected approximately $2 billion into Meta Platforms, establishing the technology company as a significant new holding representing roughly 10% of the fund's total capital.
The reallocation reflects Ackman's reassessment of Hilton's valuation prospects and a contrarian stance on Meta's current market pricing. According to Ackman's investment thesis, Meta's substantial artificial intelligence capital expenditures are obscuring the underlying strength of the business, creating what he characterizes as a compelling valuation opportunity for an enterprise of Meta's caliber and market position.
The move adds Pershing Square to the roster of major institutional investors increasing exposure to Meta, as the company continues to invest heavily in AI infrastructure and generative AI capabilities. The transaction underscores the ongoing reallocation of capital among mega-cap technology stocks and reflects divergent views on valuations within the investment community.