Pershing Square founder Bill Ackman and Third Point’s Daniel Loeb are taking sharply different approaches to big tech in early 2026, highlighting how even seasoned hedge fund managers are splitting views on the artificial intelligence-driven market rally, according to a report by Reuters.
The report cites recent regulatory filings as revealing that Ackman’s Pershing Square, has been increasing exposure to Microsoft, while simultaneously cutting back on his stake in Alphabet Inc. Loeb’s Third Point meanwhile, has moved in the opposite direction, reducing Microsoft holdings and building a position in Alphabet.
Ackman said his firm began accumulating Microsoft in February after a pullback in the share price, arguing that the market was underestimating the company’s growth potential in its Office suite and artificial intelligence initiatives. The move reflects his continued focus on large-cap technology companies viewed as core beneficiaries of AI adoption.
Loeb, by contrast, trimmed his Microsoft position in the first quarter, selling a significant number of shares after holding the stock since 2022. At the same time, Third Point added to Alphabet, signalling a preference for a different segment of the AI ecosystem as valuations and leadership within the sector evolve.
The divergence underscores how the so-called “Magnificent Seven” tech group is no longer a uniform trade for large investors. Instead, hedge funds are becoming more selective, rotating between winners rather than treating the cohort as a single exposure to artificial intelligence.
Both investors have also shown interest in Meta Platforms, establishing new positions during the first quarter. Meta has been widely viewed as another key beneficiary of AI investment trends, particularly through advertising optimisation and platform engagement tools.
Once known for high-profile activist campaigns, both Ackman and Loeb have in recent years shifted toward a lower-profile investment style. Rather than public corporate battles, they are now more focused on portfolio construction and long-term thematic positioning, with quarterly disclosures offering the main insight into their thinking.
The contrasting trades highlight broader debate across Wall Street over how far the AI-driven rally can extend and which companies are best placed to sustain earnings growth as competition intensifies and valuations remain elevated.
