Bill Ackman’s Pershing Square Holdings is one of this year’s standout hedge fund performers, with the London-listed vehicle up 25.3% through early September, far ahead of the S&P 500’s 11.7% gain, according to a report by Barron's.

The rally has been powered by the fund’s outsized positions in Fannie Mae and Freddie Mac, whose shares have more than quadrupled in 2025 amid speculation the mortgage agencies could be released from federal conservatorship.

Barron’s estimates Pershing Square has booked around $2bn in profits from the pair this year, with its combined holdings now worth roughly $2.5bn. Shares of Fannie Mae closed Friday at $14.64, up 350% year-to-date, while Freddie Mac ended at $13.50, up more than 300%.

Pershing Square’s stock, listed in London and traded OTC in the US, has rallied 32% in 2025, narrowing its steep discount to NAV. The fund’s NAV stood near $89 per share last week, versus a $63.41 market price, implying a discount of about 31%. Its market value is around $11bn, with total NAV of about $16bn.

The fund runs a highly concentrated portfolio, holding just a handful of large-cap names including Uber, Alphabet, Brookfield, and Restaurant Brands International, alongside the mortgage agencies. Ackman, who owns more than 20% of Pershing Square Holdings, has abandoned short selling in favour of long-only bets on companies he views as durable compounders.