Bill Ackman’s largest sector holdings in 3Q17
In the previous parts of this series, we analyzed Bill Ackman’s largest stock holdings in 3Q17. In this part, we’ll look at Bill Ackman’s largest sector holdings during the quarter.
Pershing Square Capital Management’s top sectors in 3Q17 were consumer discretionary (XLY), information technology (XLK), consumer staples (XLP), real estate (IYR), and materials (XLB). These sectors represented 50.5%, 18.8%, 11.1%, 10.9%, and 8.8%, respectively, of the firm’s portfolio in 3Q17.
The consumer discretionary sector generally performs well amid economic growth, wage growth, and rising income levels. The demand for various luxury products also increases when these indicators are strong.
Bill Ackman’s strong position in the consumer discretionary sector suggests that he is optimistic about economic growth. The Consumer Discret Sel Sect SPDR ETF (XLY), which tracks the performance of the US consumer discretionary sector, rose 22.4% in 2017.
The information technology sector was the firm’s second-largest holding in 3Q17. The information technology sector remained the top-performing sector of the S&P 500 Index (SPX-INDEX) (SPY) in 2017. The Technology Select Sector SPDR ETF (XLK), which tracks the US technology sector, rose 19.5% in 2017.
For more analysis, read Jim Chanos on Tax Reform, the Health Care Sector, and Short Bets.
Micron Technology (MU) is moving fast in both the DRAM (dynamic random access memory) and NAND (negative AND) space.
In 3Q17, the top five holdings of Pershing Square Capital Management were Restaurant Brands International (QSR), Automatic Data Processing (ADP), Chipotle Mexican Grill (CMG), Mondelēz International (MDLZ), and the Howard Hughes Corporation (HHC).
Broadcom (AVGO) stock fell ~8.5% after markets closed yesterday following the semiconductor giant's fiscal 2019 second-quarter earnings release. It missed analysts' revenue estimate and cut its fiscal 2019 revenue guidance by $2 billion to $22.5 billion due to sluggishness in its semiconductor solutions business.
The SPDR Gold Shares ETF (GLD), which tracks physical gold prices, has underperformed the broader markets year-to-date, rising just 4.4% compared to the S&P 500’s (SPY) gain of 15.9% as of June 14. The sentiment for gold, however, has been turning around.
Safe havens such as Treasuries and gold were back in favor on June 14 as stocks fell due to rising tensions in the Middle East, concerns over growth, and the looming threat of the US-China trade war. The tech-heavy Nasdaq Composite Index fell 0.67% in the first hour of trading.
Lululemon (LULU) stock rose 2.1% on June 13 in reaction to better-than-expected first-quarter results and an upgraded outlook for fiscal 2019 overall. The company's first-quarter adjusted EPS grew 34.5% to $0.74 on revenue growth of 20.4% to $782.32 million. Analysts had expected EPS of $0.70 and revenue of $755.31 million. Here's why the outlook got an upgrade.
As of 4:40 AM Eastern Time today, US crude oil active futures were at $51.83, ~4% below their closing level in the previous week. If US crude oil prices stay at those levels today, they'll mark their third week of decline in five weeks.
Amazon is discontinuing its Amazon Restaurants service, which has been delivering food for restaurants in parts of the United States. Amazon Restaurants launched in the United States in 2015 and entered the British market the following year. However, it met strong opposition in the British market.