Pershing Square’s Bill Ackman has taken a liking to quite a few Canadian stocks over the past several years. Undoubtedly, he’s a billionaire hedge fund legend who’s been known to have a rather concentrated portfolio of around 10 stocks, give or take a few. Indeed, with three TSX-traded names in the Pershing Square portfolio, it’s hard to ignore Canada’s influence on the legendary portfolio. While there may be more value on this side of the border at any given time, I think that the combination of a strong U.S. dollar and a weak Canadian dollar could further bolster the case for big-league American investors to jump right into some of Canada’s best stocks.
In this piece, we’ll look at a pair of stocks that Pershing Square picked up in recent years. At these levels, I believe they still trade at relatively attractive valuations as we head past the midpoint of the first quarter of 2025.
Indeed, January passed by so incredibly quickly, and while the latter half of the quarter could be a tad rougher as Trump tariffs begin to come online (or not), I still think the following names are great buys for the next five to seven years out.
Without further ado, consider the following Ackman-owned names that are worth following him into, even if it means paying a much higher price of admission. Do note that these are two of three TSX names in the Pershing Square portfolio as of the time of this writing.
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Brookfield Corp.
Brookfield Corp. (TSX:BN) has grown to become one of the largest Pershing Square holdings, with shares gaining more than 50% in the past year. Indeed, the alternative asset manager still looks to be trading at an attractive multiple despite going parabolic almost one year ago. At the time of writing, shares still go for less than 16 times forward price to earnings (P/E) — a really low price to pay for one of the hottest new momentum plays in Canada. Of course, 2025 has been met with somewhat tougher sledding, with shares retreating around 7% off recent highs.
With robust demand for real, cash-generating infrastructure assets and an emphasis on AI investments moving forward, I view BN stock as a winner that can keep winning for investors for years. Perhaps this Pershing Square holding is the best Canadian name in the basket if you’re looking for the perfect combination of value and share price momentum. Despite recent outperformance, I still view Mr. Market as discounting the name, especially relative to its peers in the alternative asset management waters.
Canadian Pacific Kansas City
CP Rail (TSX:CP) is the Canadian railway that Bill Ackman and his team are back in, likely for the long haul. Indeed, Ackman made big money in the name in the past, way back when he was more of an activist investor.
Though he’s less active, I think that his investment in CP is one that could pay huge dividends for years to come, as the benefits from the Kansas City Southern acquisition separate the railway from the pack. At more than $111 per share, shares are a tad pricey, though, going for around 27.9 times trailing P/E. My take? Look for a tariff-induced dip before jumping in. With a growing dividend (just a 0.67% yield, however), CP stands out as one of those names to hold for decades at a time.
