Attiya Zainib
4 min read
Pershing Square Inc. recently released its Q3 2026 investor letter. A copy of the letter can be downloaded here. The letter reported 13% year-over-year growth in third-quarter fee-related earnings (FRE) to $63.7 million, while distributable earnings (DE) before taxes increased 8% to $61.0 million. After taxes, DE totaled $49.5 million, or $0.12 per share, down 12% year over year, primarily due to corporate income taxes following its IPO. Fee-paying assets under management reached approximately $23.0 billion as of September 30, 2026, up 3% sequentially and 4% year over year, with permanent capital representing 98% of the total. The firm said its portfolio companies recorded average quarterly EPS growth of approximately 5% and generated a combined investment return of just over 8%, excluding Howard Hughes Holdings and Fannie Mae and Freddie Mac. Pershing Square expects its portfolio companies to deliver approximately 20% annual EPS growth over the next three to five years. A major focus of the letter was the AI infrastructure buildout. AWS revenue growth accelerated to 39% in Q3, while Meta’s AI-driven advertising improvements and Microsoft’s Azure growth and Copilot adoption strengthened their investment cases. Pershing Square also invested $110 million across seven private companies as part of its planned launch of Pershing Square Ventures. Overall, the firm believes market volatility is creating opportunities to acquire high-quality businesses at attractive valuations. In addition, please check the Fund’s top five holdings to know its best picks in 2026.
In its third-quarter 2026 investor letter, Pershing Square highlighted stocks like Brookfield Corporation (NYSE:BN). Brookfield Corporation (NYSE:BN) is an alternative asset manager and investment company with operations across real estate, infrastructure, renewable power, and private equity. The one-month return of Brookfield Corporation (NYSE:BN) was approximately 8.37%, while its shares traded between $35.61 and $49.57 over the last 52 weeks. On November 4th, 2026, Brookfield Corporation (NYSE:BN) stock closed at approximately $41.46 per share, with a market capitalization of about $92.01 billion.
Pershing Square stated the following regarding Brookfield Corporation (NYSE:BN) in its Q3 2026 investor letter:
“After significantly outperforming peers earlier in the year, Brookfield Corporation (NYSE:BN)’s share price declined 14% in the third quarter and 20% year-to-date. Sector-wide concerns continue to weigh on valuations, further exacerbated by the sharp rise in interest rates this quarter, which has caused investors to temper expectations for asset monetizations and carried interest realization. Notably, Brookfield has only modest carried interest in its earnings base (8% over the trailing twelve-month period) with carried interest representing more of an upside to earnings than a risk to current profits. We believe Brookfield will be less impacted than peers given its focus on real assets. In addition, higher near-term interest rates position Brookfield to lock in higher spread earnings at Brookfield Wealth Solutions, which acquired a low-cost $40 billion long-duration liability book through the acquisition of Just Group earlier this year (Click Here To Read The Letter In Detail).”
