Bill Ackman’s hedge fund Pershing Square Capital Management has built a substantial position in Meta Platforms, committing around $2bn to the social media and technology group as it sharpens its focus on artificial intelligence-driven growth, according to a report by Reuters.

The investment, initiated late last year, represents approximately 10% of Pershing Square’s capital, chief investment officer Ryan Israel said on a client call, underscoring the firm’s high-conviction approach. Pershing Square also confirmed it has exited its long-standing investment in Hilton Worldwide Holdings as part of its latest portfolio reshuffle.

Ackman’s team said Meta’s current valuation fails to fully reflect the company’s long-term upside from AI, describing the shares as “deeply discounted” given Meta’s scale, data advantages and earnings power. Investor concerns over the cost of Meta’s AI investments have weighed on the stock, which is down around 7% over the past 12 months.

Since Pershing Square initiated the position in November, however, Meta shares have risen 11% through the end of 2025 and gained a further 3% so far in 2026, according to materials shared with investors.

Pershing Square believes AI will enhance Meta’s core businesses by improving content recommendations and personalised advertising, while also opening up new engagement opportunities through AI-powered digital assistants and wearable technologies.

The move into Meta builds on Pershing Square’s increasing exposure to large-cap technology stocks. The hedge fund added Amazon to its portfolio last year and already holds a position in Alphabet. Ackman is known for running a highly concentrated portfolio, typically holding around a dozen positions at any one time.

Pershing Square delivered a return of around 21% in 2025.