Pershing Square Reveals Microsoft Position in 13F Filing

Bill Ackman announced a new investment position in Microsoft on Friday, disclosing that both his hedge fund and new closed-end fund have taken stakes in the technology company. Ackman wrote in an X post on Friday that his 13F would disclose a new position in Microsoft, a company his team has followed for many years and one now offered at a highly compelling valuation.

U.S. Stock holdings as of March 31 in an SEC 13F filing later today. "In our 13F which we will file later today, we will disclose a new position in Microsoft, a company the firm has followed for many years," Ackman wrote in the early-morning X post. "While $PSUS will not be filing a 13F tomorrow, it has also recently made $MFST a core holding," he added.

The closed-end fund, marketed toward retail investors, was listed on the New York Stock Exchange in late April. Ackman stated that his team has found occasional opportunities to acquire some of the most dominant long-term compounding franchises at attractive valuations.

He gave Alphabet, Amazon, and Meta as examples of dominant long-term compounding franchises acquired at attractive valuations in recent years. The investor cited Microsoft's ownership of M365 and Azure as key reasons for his investment. M365 is a software suite that includes Word, Excel, and PowerPoint.

Azure is Microsoft's cloud platform which is already playing a key role in powering the AI boom. Ackman cited Microsoft's roughly 27% economic interest in OpenAI, whose most recent funding round valued the startup at a level that implies roughly $200 billion for Microsoft's stake.

Business Insider reported that Ackman explained his Microsoft wager by pointing to its ownership of "two of the most valuable franchises in enterprise technology," namely M365 and Azure. The same report noted that Ackman's valuation argument for the stock does not reflect the embedded OpenAI holding. The disclosure marks the latest technology investment for Pershing Square.