Hedge fund manager Bill Ackman has reacquired a stake in Netflix, four years after liquidating his previous holdings at a substantial loss, according to a second-quarter investor letter released by Pershing Square Capital Management.
A $400 Million Retreat Becomes a Multi-Million Share Reunion
Pershing Square disclosed a fresh position of 3.15 million shares in Netflix, representing 4.9% of the firm’s total portfolio, according to the filing.
The investment follows a dramatic reversal from 2022, when Ackman dumped approximately 3.1 million shares at a loss of roughly $400 million following a sudden drop in subscriber growth. At the time, Ackman cited a loss of confidence in the company’s near-term predictability amid an escalating content arms race.
Declaring Victory in the Global Streaming Wars
According to the Q2 2026 investor letter co-authored by Ackman and Chief Investment Officer Ryan Israel, the hedge fund manager now believes that Netflix has effectively won the streaming wars.
The firm noted that Netflix’s subscriber base exceeds any competitor’s by a wide margin, creating a self-reinforcing scale that allows the company to outspend rivals on content while converting a high percentage of earnings into free cash flow.
Capitalizing on a Steep Mid-Year Market Pullback
Pershing Square pointed out that the entry point for the new position emerged after Netflix shares pulled back from a peak of $134 in June 2025 down to around $67 in mid-June 2026, before trading near $74 per share.
Ackman stated in the letter that earlier worries regarding competition from short-term video proved unfounded and that artificial intelligence investments should meaningfully enhance the platform’s content recommendation engine and ad-targeting capabilities.
A Broader Portfolio Overhaul Across High-Margin Sectors
Alongside Netflix, Pershing Square disclosed five other new equity stakes during the first half of 2026, including investments in Visa, Mastercard, S&P Global, Intercontinental Exchange, and eye-care company Alcon.
Ackman attributed the broader portfolio overhaul to a stock market environment heavily focused on artificial intelligence picks and shovels, which he said created valuation bargains across other high-margin business models.