Billionaire hedge fund manager Bill Ackman, known for his outsized bets and outspoken commentary, has been a lightning rod in 2025, navigating a turbulent market landscape while wielding influence in both finance and politics. His Pershing Square Capital Management’s portfolio is down nearly 14% year-to-date, a rare stumble for the activist investor, yet his high-profile moves—from a massive stake in Hertz to a public spat with President Donald Trump over tariffs—have kept him at the center of Wall Street’s attention.
Ackman’s year began with a strong tailwind from 2024, when Pershing Square delivered a 26.7% return, outpacing the S&P 500. However, 2025 has tested his mettle. The portfolio, concentrated in blue-chip names like Chipotle Mexican Grill and Universal Music Group, was hit hard by April’s tariff-driven market sell-off, which erased $1.2 billion in value from Pershing Square Holdings in a single week. Despite the setback, Ackman remains defiant, posting on X that his firm’s long-term horizon ensures resilience, citing a 70% gain during the 2020 market crash as evidence.
The hedge fund titan made headlines in April with a nearly 20% stake in Hertz Global Holdings Inc., acquired at $46.5 million, sparking a 125% surge in the rental car company’s shares since January. Ackman’s bet hinges on Hertz’s turnaround under CEO Gil West and a belief that Trump’s tariffs will boost used-car values, potentially yielding a $1.2 billion gain on Hertz’s $12 billion fleet. “Hertz is uniquely well-positioned in the current tariff environment,” Ackman wrote on X, projecting a $30 share price by 2029, up from $8.24 on April 17. Hertz’s CEO praised Ackman’s endorsement, calling it a “vote of confidence” in an internal memo.
Ackman’s vocal stance on tariffs has been a defining storyline. Initially a Trump supporter, having endorsed his 2024 campaign, Ackman broke ranks in early April, warning that the president’s “colossal” tariff plan—10% on all imports and up to 104% on Chinese goods—risked an “economic nuclear winter.” His April 6 X post, decrying Trump’s loss of business leaders’ confidence, went viral, amplifying market jitters. Days later, Ackman pivoted, praising Trump’s 90-day tariff pause as “brilliantly executed,” a reversal that drew mockery on X, with users like MSNBC’s Lawrence O’Donnell quipping, “Trump caved before making a single deal.” Wall Street insiders credit Ackman, alongside JPMorgan’s Jamie Dimon, for swaying Trump’s policy shift, which fueled the Dow’s best day in 16 years on April 9.
Beyond markets, Ackman’s political forays have stirred controversy. His $250,000 donation to a super PAC backing Andrew Cuomo’s New York City mayoral bid raised eyebrows, given Ackman’s Trump ties and his vocal opposition to diversity, equity, and inclusion policies, which have sparked weekly protests from Rev. Al Sharpton. Critics, including rival candidate Brad Lander’s camp, slammed Ackman’s influence as out of step with Democratic voters.
Ackman’s market commentary has also drawn scrutiny. On April 11, he criticized highly leveraged exchange-traded funds and zero-day options, calling them speculative traps for retail investors. Bloomberg’s Eric Balchunas countered that such products, while volatile, represent a small fraction of trading volume, suggesting Ackman overstated their systemic risk.
With a net worth of $7.7 billion, Ackman remains a polarizing figure. His Pershing Square holds stakes in Uber and Brookfield, and he’s floated a potential Hertz-Uber partnership, leveraging his 10% ownership in the ride-hailing giant. Analysts are mixed: Goldman Sachs sees Pershing Square rebounding to a 10% gain by year-end if trade tensions ease, while Morgan Stanley warns of further volatility absent tariff clarity. Ackman’s next moves—whether doubling down on Hertz or sparring over policy—will likely keep markets on edge.
As Pershing Square prepares its first-quarter investor letter, Wall Street is watching closely. For now, Ackman’s 2025 is a high-stakes gamble, blending market savvy with political brinkmanship.
By: BSB staff