Bill Ackman is something of a legend in investing circles. He manages Pershing Square Capital Management, the hedge fund he founded, which has nearly $11 billion in assets under management. The activist investor made his fortune by acquiring sizable positions in companies and pushing management to make positive changes that increase shareholder value.

What sets Ackman apart from his hedge fund colleagues is that Pershing Square owns large stakes in just eight to 12 companies and generally holds them for years. It focuses on high-quality, large-cap, North American companies with limited downside and predictable, recurring cash flows. That strategy has been wildly successful for Ackman, as Pershing Square has generated a 31% annualized return over the past five years, roughly double the performance of the S 500.

Let's look at the eight stocks that made up Pershing Square's portfolio to close out 2023 and why Ackman chose them.

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Source Fool.com