Bill Ackman Builds Microsoft Stake
Billionaire hedge fund manager Bill Ackman, founder and chief executive of Pershing Square Capital Management, disclosed Friday that his firm assembled a position in Microsoft during the first quarter, CNBC reported. Ackman announced the move via a post on X, ahead of Pershing Square’s quarterly 13F regulatory filing.
A Rare Entry Point After the Selloff
Ackman said Pershing Square began buying shares in February, shortly after Microsoft reported fiscal second-quarter earnings that disappointed the market. He noted the firm secured its position at roughly 21 times forward earnings. That valuation sits broadly in line with the broader market multiple and meaningfully below Microsoft’s own historical average. Microsoft shares have dropped more than 26% from their July 2025 record peak. The decline reflected widespread investor anxiety that artificial intelligence competition could erode the software franchise’s dominance.
Why Ackman Sees the Bears as Wrong
The hedge fund manager pushed back on the prevailing pessimism. He argued that investor concern over Microsoft’s AI positioning and the sustainability of growth at its Azure cloud unit has been overstated. He pointed to the M365 productivity suite as a deeply entrenched enterprise platform. Its security, compliance and identity infrastructure make it exceptionally difficult for rivals to displace, he said. Ackman also expressed confidence in Microsoft’s Copilot AI agent, which is embedded across M365 products. He noted that Chief Executive Satya Nadella is directly involved in those R&D efforts. Ackman said he expects the work to produce faster product improvements and stronger customer adoption over time.
Background: A Pattern of Contrarian Tech Bets
This move echoes earlier Pershing Square investments in Alphabet, Amazon and Meta. Ackman has previously said each of those positions was built during stretches of heavy market skepticism about AI costs and competitive threats. In each case, the firm bet that durable business models were being mispriced by short-term fears. Microsoft, with its enterprise software moat and cloud scale, fits the same thesis.
Pershing Square’s Expanding Public Footprint
The Microsoft disclosure follows a busy month for Ackman’s firm. Pershing Square completed dual listings in April, launching closed-end fund Pershing Square USA Ltd. under the ticker PSUS and asset manager Pershing Square Inc. under PS. The structure gives public investors two routes into the franchise. PSUS was last quoted at $41.68, trading below its $50 IPO price. Ackman did not specify the dollar size of the Microsoft position, but described it as a core holding within the portfolio.
Read Next: Federal Reserve Holds Rates Steady as Inflation Data Stays Sticky
