Billionaire hedge fund manager Bill Ackman has recently established a new position in Netflix, purchasing 3.15 million shares of the streaming giant. This marks his return to the stock four years after suffering a $400 million loss on the position.

This new stake represents 4.9% of Ackman's Pershing Square fund's portfolio, signaling a renewed confidence that Netflix has emerged victorious in the streaming wars. The fund's previous foray into the stock ended in disaster.

In early 2022, Pershing Square purchased $1 billion worth of Netflix stock at $400 per share. However, just months later, Netflix reported its first subscriber decline in decades, prompting the fund to exit the position entirely. In April 2022, the shares were sold at $225 each, resulting in a loss exceeding $400 million.

Netflix shares rebounded to $700 in 2023. While Ackman's hedge fund performed poorly in 2022, it staged a recovery in 2023 and 2024. Now, Ackman has reversed his stance.

According to Pershing Square's semi-annual interim report for the period ending June 30, 2026, the fund has re-established a position in Netflix. In the report, Pershing Square stated, "Since then, Netflix has essentially won the streaming war." The hedge fund is bullish on the company's financial growth trajectory, adding, "We anticipate revenue will grow at a double-digit compound rate, while content cost growth will trail revenue growth, continually driving margin expansion."

This move into Netflix is just one example of a major portfolio reshuffle by Pershing Square in 2026. The fund has added six new core holdings this year, with Netflix being one of them. Other new positions disclosed include Visa, Mastercard, S&P Global, Intercontinental Exchange, and Alcon.

Despite the addition of multiple new stocks, Pershing Square's top two holdings remain unchanged. Microsoft continues to be the fund's largest position, with 1.52 million shares held, representing 12.4% of the total portfolio. Uber is the second-largest holding, with 7.63 million shares making up 12% of the portfolio. Meta Platforms ranks third, with 913,501 shares held.

Pershing Square has identified what it sees as a market mispricing opportunity. The fund noted that Netflix "currently trades at a significant discount to its valuation multiple," allowing it to acquire shares of this high-quality leading company at an attractive price.

This article is for informational purposes only and does not constitute investment advice.