Ackman’s Pershing Square takes new stake in Microsoft, citing attractive valuation

Yesterday 12:00

Hedge fund manager Bill Ackman has announced that his firm Pershing Square Capital Management is taking a new investment position in Microsoft, describing the tech giant’s valuation as “highly compelling.”

The disclosure was made ahead of a formal announcement by the fund, with Ackman stating that Microsoft has become a core holding in Pershing Square’s newly launched closed-end fund, Pershing Square USA.

The move reflects a growing focus by the investor on major technology companies, particularly those positioned to benefit from advances in artificial intelligence and cloud computing.

Microsoft’s stock has experienced pressure in recent months, falling more than 15% since the start of the year. Analysts attribute this decline to concerns that the company’s early leadership in the artificial intelligence sector may be challenged by competitors such as Google and Amazon, both of which are rapidly expanding their AI capabilities.

Despite this, Ackman argues that the current market valuation presents a strong investment opportunity for long-term investors. His hedge fund has increasingly concentrated on large-cap technology firms, including previous investments in Meta Platforms, Amazon, and Alphabet Inc..

Market observers note that Pershing Square’s latest move reinforces a broader trend among major hedge funds shifting capital toward established technology leaders seen as central to the future of artificial intelligence and digital infrastructure.