Key Takeaways
- Pershing Square, led by Bill Ackman, revealed a fresh investment in Microsoft, describing the valuation as “highly compelling”
- The hedge fund started accumulating Microsoft shares in February following a post-earnings decline
- Ackman’s recently launched NYSE-traded closed-end fund, Pershing Square USA, has also included Microsoft among its major holdings
- Shares of Microsoft have declined over 15% in 2026 amid concerns about intensifying AI competition from Google and Amazon
- This investment continues Pershing Square’s strategy of building positions in major technology companies including Meta, Amazon, and Alphabet
Billionaire investor Bill Ackman revealed on Friday that Pershing Square has established a new stake in Microsoft (MSFT), describing the technology leader as presenting a “highly compelling valuation” following its year-to-date decline of more than 15%.
The activist investor shared the news via X, indicating that Pershing Square’s quarterly 13F filing—scheduled for release later that day—would officially disclose the position. Ackman explained that his firm started building the Microsoft stake during February, capitalizing on weakness that followed the company’s earnings announcement.
“In our 13F which we will file later today, we will disclose a new position in Microsoft, a company we have followed for many years now offered at a highly compelling valuation,” Ackman wrote.
Shares of Microsoft climbed approximately 1% on Friday following Ackman’s announcement. Prior to the session, the stock had experienced significant headwinds throughout 2026, trading down more than 15% since the beginning of the year.
The stock’s underperformance has been primarily attributed to mounting concerns that Microsoft’s pioneering advantage in artificial intelligence may be diminishing. Rivals Google and Amazon have demonstrated significant advancements in their respective AI initiatives, prompting market participants to question whether Microsoft’s first-mover status retains meaningful value.
New Closed-End Fund Mirrors the Investment
Pershing Square USA, Ackman’s recently introduced closed-end fund that commenced trading on the New York Stock Exchange in late April 2026, has similarly established Microsoft as a significant portfolio component. This represents a distinct investment vehicle from his primary hedge fund operation.
The fund’s market debut occurred mere weeks prior to the Microsoft position disclosure, resulting in two separate Pershing Square entities holding the technology giant simultaneously.
Expanding Technology Sector Exposure
The Microsoft investment aligns with an established trend. Over recent years, Ackman has systematically expanded his exposure to leading technology companies.
During February 2026, he announced a position in Meta, supporting the social media giant’s AI push. Previously, he allocated capital to Amazon, while Pershing Square initiated an Alphabet investment in late 2022.
Microsoft represents the most recent addition to this technology-focused portfolio. Ackman has not yet disclosed the dollar amount or share count of the Microsoft investment.
The February entry point followed Microsoft’s quarterly earnings release and subsequent stock weakness. Ackman indicated that the valuation during that period presented an opportunity too attractive to ignore.
Microsoft has continued facing selling pressure since that time. The stock’s decline exceeding 15% throughout 2026 reflects sustained market anxiety regarding AI competitive dynamics rather than temporary volatility.
Ackman refrained from providing any price objectives or commentary regarding Pershing Square’s anticipated holding period for the investment.
The 13F regulatory filing, which reports first quarter 2026 equity positions, was anticipated to be submitted to the Securities and Exchange Commission on Friday and would disclose the complete details of the stake.
