Key Takeaways
- Pershing Square, led by Bill Ackman, has revealed a newly established stake in Microsoft, describing the current valuation as exceptionally attractive
- The investment firm started accumulating MSFT shares in February 2026 following a post-earnings decline
- Ackman’s newly launched closed-end fund, Pershing Square USA, which started trading on the NYSE in April 2026, has also included Microsoft among its primary holdings
- MSFT shares have declined over 15% year-to-date as market participants express concerns regarding the company’s competitive standing in artificial intelligence versus Google and Amazon
- This investment continues Ackman’s strategy of building positions in major technology companies, including previous stakes in Meta, Amazon, and Alphabet
Billionaire investor Bill Ackman announced Friday that his hedge fund Pershing Square has established a position in Microsoft (MSFT), describing the technology leader as representing a “highly compelling valuation” opportunity following the stock’s year-to-date decline exceeding 15%.
Through a post on X, Ackman revealed that details of the investment would appear in Pershing Square’s 13F regulatory filing scheduled for later that day. He indicated the firm initiated its purchases in February, taking advantage of weakness following 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% Friday following Ackman’s disclosure. Prior to the session, the stock had experienced significant weakness throughout 2026, falling more than 15% from the year’s opening levels.
The year-to-date weakness stems primarily from investor anxiety that Microsoft’s initial advantage in artificial intelligence deployment may be diminishing. Competitive advances from Google and Amazon in their respective AI initiatives have prompted market participants to question whether Microsoft’s first-mover advantage remains intact.
New Closed-End Fund Also Establishes Microsoft Holdings
Pershing Square USA, Ackman’s recently launched closed-end investment vehicle that commenced trading on the New York Stock Exchange in late April 2026, has similarly incorporated Microsoft as a central portfolio component. This represents a distinct entity from his flagship hedge fund operation.
The fund’s public market debut occurred only weeks prior to the Microsoft position disclosure, meaning two separate Pershing Square investment vehicles now hold the stock 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.
In February 2026, he announced a stake in Meta, supporting the social media giant’s AI push. Previously, he established positions in Amazon, while Pershing Square initiated an Alphabet investment in late 2022.
Microsoft now joins this roster of major technology holdings. Ackman has not yet publicly revealed the monetary size of the Microsoft investment.
The February entry point followed Microsoft’s quarterly earnings release and subsequent stock weakness. Ackman characterized the valuation at those levels as an opportunity that warranted action.
Microsoft has continued experiencing downward pressure since that initial purchase. The stock’s 15%-plus year-to-date decline reflects ongoing market concerns regarding artificial intelligence competitive dynamics rather than temporary volatility.
Ackman provided no specific price target or timeline regarding Pershing Square’s intended holding period for the position.
The first quarter 2026 13F filing, which was set to be submitted to the Securities and Exchange Commission on Friday, was expected to disclose the complete size of the Microsoft stake.
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