Concentration, in portfolio management, means putting most of a fund's capital into a small number of positions rather than spreading it across many names. Pershing Square has organized its holdings that way, with its revamped portfolio now centered on Uber (UBER), Brookfield, and Microsoft (MSFT).
Three positions is a narrow anchor for a fund. The approach reflects a conviction trade: the managers are betting that these specific names will produce better results than broader diversification would. It also means Pershing Square's performance tracks closely with how Uber, Brookfield, and Microsoft move.
The three holdings sit in different parts of the market. Uber is the ride-hailing and delivery platform traded on U.S. exchanges under UBER. Brookfield is the Canadian alternative asset manager with businesses across infrastructure and real estate. Microsoft, listed as MSFT, is the software and cloud computing company.
Pershing Square uses the word "revamped" to describe the current portfolio, signaling that the fund's construction has changed from what it held previously. The specifics of what was sold and when the shift happened are not detailed in what the fund has made public.
The disclosure describes the three positions as carrying "primary" concentration, which leaves room for additional holdings beyond these three.