Cathie Wood, Bill Ackman Share 3 Stock Investments In Common: Can You Guess What They Are?

Two of the most well-known investors are betting on the same three Magnificent Seven stocks. Here's a look at the stocks owned by both Cathie Wood and Bill Ackman.

Stocks in Common

Ackman is the man behind the Pershing Square hedge fund, which lately has been investing in Magnificent Seven stocks.

Wood is the CEO of Ark Invest, the well-known ETF company that runs the six ETFs below.

• Ark Autonomous Technology & Robotics ETF (BATS:ARKQ)
• Ark Innovation ETF (BATS:ARKK)
• Ark Next Generation Internet ETF (BATS:ARKW)
• Ark Space & Defense Innovation ETF (BATS:ARKX)
• Ark Blockchain & Fintech Innovation ETF (BATS:ARKF)
• Ark Genomic Revolution ETF (BATS:ARKG)

Across the ETFs and Pershing Square Capital Management, several positions are held by both well-known investors.

Amazon.com Inc (NASDAQ:AMZN): The ecommerce giant is the second-largest holding in the Pershing Square Capital fund at $2.4 billion and 17% of assets as of the end of the first quarter. The stock is held in ARKK, ARKW, ARKQ, ARKF and ARKX, where it is a top 10 holding in ARKW, ARKQ and ARKX, according to data from CathiesArk.

Meta Platforms (NASDAQ:META): The social media giant is the sixth-largest holding in the Pershing Square Capital fund at $1.5 billion and 11% of assets as of the end of the first quarter. The stock is held in ARKK, ARKW and ARKF, but is not a top 10 holding in any of the ETFs.

Alphabet Inc (NASDAQ:GOOG)(NASDAQ:GOOGL): The technology giant is the ninth largest holding (GOOG) and 11^th largest holding (GOOGL) in the Pershing Square Capital fund at 0.7% and 0.1% of assets as of the end of the first quarter. Alphabet is held in ARKK, ARKW, ARKQ and ARKX, where it is a top 10 holding in ARKW and ARKQ.

In the first quarter, Ackman increased his Amazon holdings by 19%, while cutting his Alphabet holdings by 95%. Meta is a newer position and one of the biggest bets from the hedge fund leader in recent years.

Different Investing Styles

Ackman is a value and activist investor, known for taking large stakes in companies with dominant positions in their sectors and for pushing for changes to unlock shareholder value.

The hedge fund manager recently initiated a stake in Meta in the fourth quarter and a position in Microsoft in the first quarter, his latest Magnificent Seven bets.

The legendary investor also launched several tracking stocks to give investors better ways to capitalize on the gains from Pershing Square.

• Pershing Square (NYSE:PS): Management company that receives fees and royalties on the investments and entities
• Pershing Square USA (NYSE:PSUS): Portfolio of best ideas, trading at an 18% discount to cash

Ark Funds invests in disruptive technology and innovative companies that it believes will outperform in the longer run. This often leads to favoring high-growth, technology-related names. It typically focuses on businesses in sectors like fintech, cryptocurrency, electric vehicles, space exploration, genomics, AI and more.

Photo: ChrisStock82 / Shutterstock