• Outperformance: Pershing Square achieved 800 to 1,000 basis points of outperformance relative to the S&P 500.

• Howard Hughes Net Operating Income: Approaching $300 million from income-producing real estate assets.

• Investment Activity: Trimmed five positions, sold one entirely, added to two existing positions, and bought three new positions.

• Uber Investment: Up about 35% from cost since acquisition.

• Universal Music Group Position: Reduced by just under 40%.

• Brookfield Distributable Earnings: Up 26% in Q1.

• Google Operating Profit Growth: 17% last quarter.

• Restaurant Brands Operating Profit Growth: Expected to grow more than 8% this year.

• Chipotle Same-Store Sales: Down 0.4% in the first quarter.

• Nike Net Cash Position: Approximately $1.5 billion.

• Hilton Room Count Growth: 6% to 7% on average.

• Hertz Liquidity: More than $1 billion available.

• Warning! GuruFocus has detected 6 Warning Sign with LSE:PSH.

Release Date: May 22, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Pershing Square Holdings Ltd (LSE:PSH) achieved 800 to 1,000 basis points of outperformance relative to the S&P 500, driven by a unique portfolio.

• The company has made several new investments, including a significant stake in Howard Hughes, aiming to transform it into a diversified holding company.

• Pershing Square Holdings Ltd (LSE:PSH) has strategically invested in Amazon at a historically low valuation, capitalizing on market volatility.

• The company has a strong focus on businesses insulated from tariffs and global trade flows, reducing exposure to economic uncertainties.

• Pershing Square Holdings Ltd (LSE:PSH) has successfully managed portfolio adjustments, including trimming positions in overvalued stocks and reinvesting in undervalued opportunities.

Negative Points

• The uncertainty surrounding tariff policies and geopolitical tensions, such as those involving China and Russia-Ukraine, pose potential risks to market stability.

• Chipotle and Nike have faced challenging starts to the year, with share prices down due to external factors like severe weather and tariffs.

• The economic sensitivity of some investments, such as Canadian Pacific, has led to strategic divestments despite long-term potential.

• The potential impact of tariffs on Nike, which imports all merchandise from Southeast Asia, remains a concern despite its strong cash position.

• Hertz's turnaround is challenged by moderating demand in corporate and government travel sectors, despite its potential for profitability.

Q & A Highlights

Q: How does Pershing Square Holdings plan to manage potential conflicts of interest between its current funds and Howard Hughes? A: Bill Ackman (Trades, Portfolio), CEO, explained that neither he nor Ryan Israel will receive compensation from Howard Hughes in cash or equity. Instead, the entire Pershing Square team is available to Howard Hughes under a $15 million annual fee arrangement. Any fees received will be rebated to reduce the fees of the funds proportionally. Ackman emphasized that the mandates of Pershing Square Funds and Howard Hughes are distinct, minimizing conflict risks.