Bill Ackman Built a $2.4 Billion Stake in Microsoft, Calling It a "Core Holding" Bought at a "Highly Compelling Valuation." Here's Why He's Betting Big on Big Tech.
Bill Ackman’s Pershing Square has significantly increased its stake in Microsoft, now holding over $2.3 billion in shares. This move reflects a broader strategic shift by the firm to prioritize large-cap technology companies.
Why it matters
Major institutional investment moves by high-profile hedge fund managers often signal market sentiment and influence sector-wide stock performance.
Earlier this year, Pershing Square ( PS +13.69% ) founder and CEO Bill Ackman piled into a stock well-known not only to tech investors, but the general public at large: Microsoft ( MSFT -0.80% ) .
This demonstrates the famous investor's bullish outlook on the tech sector, as four slots in the company's limited equity portfolio are held by prominent tech names (or at least heavily tech-slanted, in the case of rideshare king Uber Technologies ). Here's why Ackman and his team are so drawn to the sector these days.
Pershing Square's Bill Ackman. Image source: Getty Images.
Pershing Square's Microsoft move became public knowledge in May, and like most of the company's buy-ins, it was a doozy. The company bought more than 5.65 million shares, worth nearly $2.1 billion as of the end of March.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in