Bill Ackman Rotates Out of Canadian Pacific, Into Amazon

The End of a Signature Bet

Ackman sold Pershing Square’s entire 14.8 million shares of Canadian Pacific, a position valued at more than $1 billion last quarter and representing nearly 9% of the portfolio. For over a decade, CP had been synonymous with Ackman’s activist legacy, from his 2012 campaign that reshaped its leadership to his more recent re-entry in 2022.

Ackman emphasized that the decision was made “with regret,” stressing his high regard for CP’s management and long-term prospects. But the move signals a willingness to part with even his most storied holdings when capital can be redeployed into higher-conviction opportunities.

Amazon: A High-Conviction Addition

The most substantial redeployment was into Amazon.com, where Pershing Square now holds 5.82 million shares worth $1.28 billion, equal to 9.3% of the total portfolio. Ackman’s team described Amazon as one of the “most admired businesses” they follow, but previously considered it too expensive.

That changed earlier this year, when tariff-driven fears and cloud computing slowdown worries caused Amazon’s stock to retreat. Pershing Square seized the opportunity, betting that Amazon’s retail and AWS franchises remain resilient. As Chief Investment Officer Ryan Israel explained to clients:

“We felt that the company would be able to work through any slowdown in the cloud computing division Amazon Web Services and we did not judge that tariffs would have a material impact on the earnings in the retail business.”

The team also voiced confidence in CEO Andrew Jassy, highlighting his push for greater operating efficiency and profit margin expansion at scale.

Takeaway

Bill Ackman’s latest filings underscore a deliberate rotation out of industrials and into technology. The sale of Canadian Pacific closes a defining chapter in his activist career, while the move into Amazon signals confidence in one of the world’s most valuable companies at a time of temporary market dislocation.

For investors watching Pershing Square, the message is clear: Ackman is willing to let go of past victories if it means positioning his portfolio for the next decade of growth.