With billionaire activist investor Bill Ackman betting big on economic recovery despite the spread of the hyper-contagious COVID-19 Delta variant, we think it could be wise to bet on potential beneficiaries of an expanding economy, namely Lowe's (LOW), Chipotle (CMG), and Restaurant Brands International (NYSE:QSR). They are among the top holdings of Ackman’s hedge fund, Pershing Square Capital Management. Read on. While cyclical stocks received immense investor attention earlier this year amid the fast-paced economic recovery, the rapid spread of the hyper-contagious COVID-19 Delta variant in recent weeks has made investors anxious about the pace of economic recovery. According to CDC Director Dr. Rochelle Walensky, “The Delta variant now accounts for 83% of all sequenced Covid cases in the U.S.” Nevertheless, billionaire investor Bill Ackman said earlier this week that he expects a massive economic boom despite the delta variant.
The activist investor, who owns and manages Pershing Square Capital Management L.P., is known for his success with investments in The Wendy's Company (NASDAQ:WEN), and Canadian Pacific Railway Limited (NYSE:CP), among others. Pershing Square Holdings, Ltd., the closed-ended balanced hedge fund managed by Pershing Square Capital Management, has returned 24.7% over the past nine months.
With Bill Ackman betting big on the rebound in restaurants and retail, among other sectors, we think it could be wise to scoop up the shares of Lowe's Companies, Inc. (NYSE:LOW), Chipotle Mexican Grill, Inc. (NYSE:CMG), and Restaurant Brands International Inc. (QSR). They are among his hedge fund’s top holdings.