Bill Ackman’s Pershing Square has built a position in Microsoft, as the hedge fund manager said the software giant’s recent pullback created a rare opportunity to buy one of the world’s dominant technology franchises at a compelling valuation.
Ackman disclosed the investment in a lengthy post Friday ahead of his firm’s quarterly 13F filing, saying Pershing Square began accumulating shares in February after Microsoft’s stock declined following its fiscal second-quarter earnings report.
“We were able to establish our position at a valuation of 21 times forward earnings, broadly in line with the market multiple and well below Microsoft’s trading average over the last few years,” Ackman wrote.
While Ackman didn’t note the size of his stake in the tech giant, he called it a “core holding.”
Ackman compared the investment to previous Pershing Square purchases of Alphabet, Amazon and Meta, which he said were acquired during periods of market skepticism around artificial intelligence competition and spending.
