Bill Ackman moves into Microsoft, with the size to be disclosed today

"Pershing Square has taken a new position in Microsoft, with the size to be disclosed in a 13F filing later on Friday. The stock is down roughly 16% year-to-date. Ackman's stated rationale was that the market is mispricing the enterprise franchise rather than the AI one. Investors have underestimated Microsoft's software 'given its deeply embedded role across enterprises and highly attractive price-value proposition', he wrote, framing the position as a quality-compounder bet on the installed base rather than a directional call on Azure capex."

"The Microsoft entry follows the same shape: a megacap dragged lower by an AI-spending guide, framed by Ackman as an opportunity to buy a high-quality franchise at a temporarily de-rated multiple. Funds running more than $100m are required to file Form 13F disclosures of US-listed positions within 45 days of quarter-end, which makes Friday a heavy day for hedge-fund reading. Pershing Square's last 13F, covering the December quarter, showed eleven positions and roughly $16bn in disclosed US holdings concentrated in Brookfield, Uber, Amazon, Alphabet and Meta."

"Ackman is, in effect, arguing that Microsoft's existing Office, Windows and Azure book of business is enough to clear the bar, separately from the AI optionality. Pershing Square has not disclosed the size of the position or the average purchase price. The 13F filing is expected later on Friday US time."

Pershing Square took a new position in Microsoft, with the position size to be disclosed in a Form 13F filing later on Friday. The stock is down about 16% year-to-date. The rationale centers on the market mispricing Microsoft’s enterprise franchise rather than its AI franchise. The investment is framed as a quality-compounder bet on Microsoft’s deeply embedded software role across enterprises and its price-value proposition, rather than a directional bet on Azure capital expenditures. The firm’s prior 13F for the December quarter listed eleven positions and about $16bn in disclosed US holdings, with Microsoft absent. The upcoming filing will indicate whether existing holdings were trimmed or the new position was funded from cash.

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