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Key Moments

  • Bill Ackman said Pershing Square will reveal a new Microsoft stake, calling the stock “highly compelling” on valuation.
  • Microsoft has become a core holding in Pershing Square USA, the hedge fund’s recently launched NYSE-listed closed-end fund.
  • Pershing Square has been expanding its technology exposure with positions in Meta Platforms, Amazon, and a prior investment in Alphabet.

Ackman Reveals New Microsoft Position

Bill Ackman stated on Friday that his hedge fund Pershing Square plans to announce a new investment in Microsoft later in the day, describing the technology company as trading at a “highly compelling valuation”. His comments were made in a post on the social media platform X.

Microsoft as a Core Holding in Pershing Square USA

Ackman also noted that Microsoft has been established as a core holding in Pershing Square USA, a new closed-end fund that began trading on the NYSE last month. The fund is part of Pershing Square’s broader strategy and now includes Microsoft among its primary positions.

EntityDevelopment
Pershing Square (hedge fund)Will disclose a new position in Microsoft
Pershing Square USANew closed-end fund on NYSE; Microsoft designated as a core holding
MicrosoftDescribed by Ackman as at a “highly compelling valuation”

Expanding Exposure to Large-Cap Technology

The move into Microsoft aligns with Pershing Square’s increasing focus on major technology companies. In February, Ackman said that Pershing had acquired shares of Meta Platforms, expressing confidence that the parent company of Facebook will benefit from artificial intelligence.

He also initiated a new position in Amazon last year, and the firm previously invested in Alphabet in late 2022. These actions reflect a growing concentration in large-cap tech names across the Pershing Square portfolio.

Market Backdrop for Microsoft Shares

Microsoft’s stock price has declined more than 15% so far this year. The pullback has occurred as some investors question whether the company is maintaining its early lead in artificial intelligence, while competitors such as Google and Amazon are perceived to be making notable advances in their own AI initiatives.

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