Bill Ackman's investment firm Pershing Square has marked a return to the Netflix stock register four years after exiting a position with a $400 million loss.
Pershing Square previously held Netflix, the streaming company, briefly in 2022 before selling out at a loss.
The renewed bet on Netflix comes as Ackman's funds trail the wider market this year.
Ackman’s decision to re-enter Netflix signals a significant change in his outlook on the streaming industry.
It comes as Ackman's Pershing Square disclosed six new stock holdings. As well as the Netflix investment the fund added to its holdings with positions in Visa, Mastercard, eye care company Alcon, exchange operator Intercontinental Exchange and financial data provider S&P Global since the start of the second quarter.
Ackman expects strong earnings growth at the six companies, which he treats as the main driver of investment value over time.
The fund manager also unwound a major media investment elsewhere in the portfolio.
Ackman notably exited an estimated $1.5 billion position in Universal Music Group (AEX:UMG) after the company rejected his $65 billion takeover bid.
Visa and Mastercard, the payments networks, alongside S&P Global and Intercontinental Exchange, the exchange operator, all sit in sectors with high barriers to entry and steady, recurring revenue.
Alcon, the eye care company, rounds out a portfolio now weighted towards defensive, market-leading firms rather than turnaround or takeover bets.
