Pershing Square builds $2.09 billion Microsoft stake

Bill Ackman used a routine quarterly filing to show a new, concentrated bet on Microsoft. Pershing Square Capital Management disclosed on May 15 that it owned about 5.65 million Microsoft shares valued at roughly $2.09 billion as of March 31, according to its Form 13F filing with the U.S. Securities and Exchange Commission. Ackman said separately on X that Pershing had been buying the stock since February. He described the position as a purchase made at “about 21 times forward earnings,” which he called a compelling entry point. That filing matters because 13Fs show what large U.S. investment managers held at quarter-end, not what they own now. The May 15 disclosure captured Pershing’s U.S.-listed equity positions as of March 31, while Ackman’s comments added the rationale behind the trade. Reuters reported that Pershing funded the Microsoft purchase in part by selling its long-held investment in Alphabet. (money.usnews.com) ### How big is the Microsoft position? The 13F showed Pershing owning about 5,654,078 Microsoft shares with a market value of $2,092,970,053 at the end of the first quarter, according to reports that cited the filing. That made Microsoft one of Pershing’s largest disclosed U.S. equity positions immediately after it appeared in the portfolio. Reuters and other market reports said the position was new in the quarter. (money.usnews.com) Microsoft’s size also helps explain why the filing drew attention beyond hedge-fund watchers. Bloomberg reported that the stake still amounted to less than one-tenth of 1% of Microsoft’s market value, but for Pershing it was large enough to rank as a core holding. ### Why did Ackman say he bought after February weakness? Ackman said Pershing began accumulating Microsoft shares in February after the stock fell following the company’s fiscal second-quarter earnings report, according to reports citing his X post. (newsorga.com) He said the fund was able to buy at about 21 times forward earnings, “broadly in line with the market multiple and well below Microsoft’s trading average over the last few years.” (bloomberg.com) That valuation point is central to the trade as Ackman presented it. Reuters reported that he described Microsoft as having a “compelling valuation” after the recent drop in its share price. Bloomberg said Ackman viewed the business as stronger and more resilient than investors were giving it credit for at that price. (thestreet.com) ### What businesses inside Microsoft did Pershing point to? Ackman highlighted Microsoft 365 and Azure as the company’s two key franchises in enterprise technology, according to Bloomberg. Reports citing his post said he also pointed to M365 Copilot, Azure’s role in AI workloads, and Microsoft’s relationship with OpenAI as parts of the investment case. (money.usnews.com) Reuters said Pershing’s disclosure came as investors were weighing Microsoft’s heavy AI spending against expected growth from cloud and artificial-intelligence products. The filing itself did not include that narrative; the thesis came from Ackman’s public comments alongside the regulatory disclosure. ### Where did the money come from? (bloomberg.com) Reuters reported that Pershing sold its long-owned Alphabet stake to help pay for the Microsoft purchase. Separate market reports said Pershing sharply reduced Alphabet holdings in the same quarter while adding Microsoft, making the switch visible in the 13F. That portfolio move gave investors a cleaner read on what changed. (money.usnews.com) Pershing’s prior 13F, filed on February 17 for holdings as of December 31, did not show Microsoft among its disclosed U.S. equity positions. By May 15, Microsoft had appeared as a multibillion-dollar line item. ### What should readers watch next? The next formal update on Pershing’s U.S. equity holdings will come with its second-quarter Form 13F, which would be due by mid-August if normal SEC deadlines apply. (money.usnews.com) That filing will show whether Microsoft remained at similar size, grew, or was trimmed as of June 30. Microsoft’s own next milestones will come through its regular earnings reports and any updated commentary on Azure growth, Copilot adoption and AI-related capital spending. (sec.gov) Those disclosures, rather than the backward-looking March 31 snapshot, will be the next named checkpoints investors can compare against Ackman’s stated thesis. (money.usnews.com)