Key insights
- Bill Ackman clarified that Pershing Square's sale of Alphabet shares was not a bearish bet, but a strategic move to fund a new position in Microsoft due to valuation considerations. He remains bullish on Alphabet long-term. This has neutral impact as it is a portfolio allocation decision.
May 16 (Reuters) - Billionaire investor Bill Ackman said on Saturday that the sale of Google parent Alphabet’s shares was not a bet against the company.
Ackman on Friday said his firm Pershing Square had built a new position in tech giant Microsoft after its stock price dropped recently, and sold his long-owned investment in Alphabet to help pay for it.
"To be clear, our sale of Google was not a bet against the company. We are very bullish long term on Alphabet. But at current valuations and in light of our finite capital base, we used as a source of funds for Microsoft," Ackman wrote on X on Saturday.