Billionaire investor Bill Ackman announced that his hedge fund, Pershing Square Capital Management, has acquired a new stake in Microsoft. Ackman described the technology giant as underpriced in the current market. The disclosure is expected to be officially filed in regulatory documents later Friday.
Pershing Square’s latest move signals confidence in Microsoft’s long-term growth prospects. Ackman’s firm is known for making concentrated, high-conviction investments. The stake adds Microsoft to a portfolio that includes other prominent companies in the financial and consumer sectors.
Microsoft’s stock has faced pressure amid a broader tech sell-off in recent months. Ackman’s endorsement could provide a boost to investor sentiment around the company. The software maker continues to expand its footprint in cloud computing and artificial intelligence.
The investment aligns with Pershing Square’s strategy of targeting dominant businesses with durable competitive advantages. Microsoft’s strong cash flow and market position make it a fit for that approach. Ackman has previously praised the company’s management and product ecosystem.
Regulatory filings due later Friday will reveal the size of the stake. Pershing Square often builds positions quietly before public disclosure. The move marks a notable shift, as Ackman had not previously held a major position in Microsoft.
Market analysts will likely scrutinize the filing for details on the timing and scale of the purchase. Microsoft’s valuation has drawn mixed opinions from Wall Street amid slowing revenue growth. Ackman’s bet suggests he sees room for significant upside.
The announcement comes as Pershing Square seeks to deploy capital after returning funds to investors. The firm has been actively repositioning its portfolio in recent quarters. Microsoft now joins holdings that include Restaurant Brands International and Alphabet.
