Bill Ackman’s hedge fund, Pershing Square Capital Management, informed clients that it established a sizable position in Meta Platforms toward the end of last year, citing expectations that artificial intelligence will be a key growth catalyst for the company.
Pershing Square said it deployed approximately 10% of the firm’s capital on the Meta position - an amount the fund’s team put at about $2 billion - according to comments made by chief investment officer Ryan Israel on a client call. The move coincides with the fund reporting a 21% return for the previous year.
In a presentation shared with investors, the Pershing Square investment team argued that Meta’s current market valuation does not fully reflect its long-term potential derived from AI and described the shares as deeply discounted for what it called one of the world’s greatest businesses. The presentation noted recent price moves for Meta’s stock and tied the purchase to anticipated improvements in content algorithms and ad personalization powered by AI.
Performance data supplied to clients showed mixed near-term price action for Meta. Over the last 12 months the stock registered a 7.4% decline, the presentation said. However, since Pershing Square began the Meta wager in November, the share price climbed 11% in 2025 and advanced a further 3% in 2026 through February 9, according to the materials the fund used on the client call.
Pershing Square acknowledged investor worries about the scale of Meta’s AI expenditures, which market participants have cited as a source of downward pressure on the stock. The hedge fund nevertheless outlined specific ways it expects AI to contribute to the company’s business: improved content recommendations, more effective personalized advertising and the potential for new engagement vectors such as AI-driven digital assistants or future wearable devices.
Alongside the new Meta position, Pershing Square said it has exited its investment in Hilton Worldwide Holdings, indicating a shift in portfolio allocation away from the hospitality name. The presentation and the client call provided the fund’s rationale for both the Meta purchase and the Hilton sale but did not include additional commentary on timing or proceeds beyond the capital allocation to Meta.
Ackman has signaled an interest in major technology platforms in recent months. The fund added a new stake in Amazon last year and at earlier points maintained an investment in Alphabet, the presentation noted. Pershing Square is known for running a concentrated set of positions, typically holding on the order of a dozen major bets at a time.
What this means - For market participants, Pershing Square’s sizable allocation to Meta reflects a conviction that AI-driven product and advertising improvements can meaningfully enhance revenue and engagement metrics over time. The sale of the Hilton stake demonstrates active reweighting of the portfolio into areas the fund views as higher potential, while also reducing exposure to hospitality.