Pershing Square Reallocates $2.4 B From 95% Alphabet Stake to Microsoft
Pershing Square sold roughly 95% of its Alphabet stake to fund a $2.4 billion position in Microsoft after the software giant’s shares slid double digits. The fund acquired over 5.6 million Microsoft shares in Q1, and Bill Ackman stressed the transaction was a tactical reallocation rather than a bet against Alphabet.
1. Ackman’s Portfolio Rebalancing
In the first quarter, Pershing Square Capital Management liquidated approximately 95% of its Alphabet Inc Class A shares to free capital for another investment. Bill Ackman clarified that the move was driven by portfolio rebalancing rather than a negative outlook on Alphabet’s long-term prospects.
2. Microsoft Position Details
The fund deployed the proceeds to build a $2.4 billion Microsoft position, acquiring over 5.6 million shares during a period of share-price weakness. This accumulation began in February as Microsoft’s stock pulled back amid investor concerns over its $190 billion AI expenditure and a revised OpenAI partnership.
3. Rationale on Alphabet Position
Ackman emphasized that the sale was not a wager against Alphabet but a strategic allocation given current valuations and finite capital constraints. He reiterated a bullish long-term view on Alphabet, indicating potential re-entry at more attractive price levels.
4. Integration into New Closed-End Fund
The newly acquired Microsoft shares serve as a foundational anchor in Pershing Square USA Ltd, the closed-end fund that raised $5 billion in its April 29 IPO. This structural pivot enhances concentration in leading technology names within Pershing Square’s broader fund family.