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Ackman Makes Microsoft a Core Holding as Pershing Square Reweights Into Big Tech

The fund has shifted capital toward cash‑generative cloud and software leaders to prioritize predictable free cash flow and scale for AI spending.

Overview

  • Pershing Square has built a multi‑billion‑dollar Microsoft stake and now treats the stock as a core holding, owning just over 6.2 million shares that are worth roughly $2.3 billion at the end of the last reporting period.
  • The firm sold its remaining Alphabet position and used proceeds to increase Microsoft exposure and to create larger stakes in Meta and a new position in Netflix.
  • Pershing trimmed some Amazon exposure while keeping a highly concentrated portfolio that had held four tech‑related names making up about 40% of assets at year end.
  • Bill Ackman says trades were driven by a clear investment checklist that favors simple, predictable businesses with strong competitive positions, high free cash flow, low leverage, and experienced management.
  • Pershing frames the moves as a response to an AI‑led market where gains are narrow and scale in cloud infrastructure matters, a shift that could push other investors toward large, cash‑generating cloud providers and affect index concentration.