In this article
Bill Ackman’s Pershing Square has built a position in Microsoft
, as the hedge fund manager said the software giant’s recent pullback created a rare opportunity to buy one of the world’s dominant technology franchises at a compelling valuation.
Ackman disclosed the investment in a lengthy post Friday ahead of his firm’s quarterly 13F filing, saying Pershing Square began accumulating shares in February after Microsoft’s stock declined following its fiscal second-quarter earnings report.
“We were able to establish our position at a valuation of 21 times forward earnings, broadly in line with the market multiple and well below Microsoft’s trading average over the last few years,” Ackman wrote.
