May 15 - Bill Ackman said on Friday that his hedge fund Pershing Square will report a new position in Microsoft later in the day, describing the software giant as trading at a "highly compelling valuation." In a post on the social media platform X, Ackman added that Microsoft has been made a core holding in Pershing Square USA, the closed-end fund that launched on the NYSE last month.
The purchase of Microsoft is part of a broader pivot by Ackman toward larger technology names. Earlier this year, in February, he disclosed that Pershing had acquired shares of Meta Platforms on the view that the Facebook parent stands to benefit from artificial intelligence developments. Last year, the fund opened a position in Amazon, and it previously took a stake in Alphabet in late 2022.
Microsoft’s shares have declined by more than 15% so far this year, a slide that reflects investor concern about whether the company’s early lead in artificial intelligence is being eroded as competitors make advances. Ackman’s position signals that he regards the current price as an attractive entry point despite those market worries.
The addition of Microsoft to Pershing Square USA’s core holdings follows the fund’s recent debut on the NYSE. Ackman framed the purchase as driven by valuation considerations, writing that the company sits at a "highly compelling valuation" in his post.
Pershing’s actions come amid the manager’s growing appetite for the technology sector, with the fund having made fresh investments in several major tech platforms over the past year. Those moves include purchases in Meta Platforms, Amazon and Alphabet at different times, and now Microsoft has joined that list as a prominent holding.
Context and market reaction
The investment in Microsoft occurs against a backdrop of intense competition among large cloud and AI players. Investors have shown caution toward Microsoft this year given the stock’s drop exceeding 15 percent, even as market participants watch how Google and Amazon progress with their own AI initiatives.
What Pershing Square has said
- Ackman announced the forthcoming disclosure of a Microsoft stake and described its valuation as "highly compelling."
- Pershing Square USA, the new closed-end fund listed last month, has made Microsoft a core holding.
- The fund’s recent activity reflects a broader increase in exposure to large technology companies, including earlier purchases of Meta Platforms, Amazon and Alphabet.
Given the facts Ackman shared publicly, the move highlights his continued interest in large-cap technology stocks and his view that current prices in at least some of those names present a buying opportunity.