The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

By Sebastian Pellejero

NEW YORK, May 21 (Reuters Breakingviews) - Bill Ackman has made the $3 trln software giant a top holding. Rival Chris Hohn has slashed it to 1% of his portfolio from 10% since 2017. Counting on an AI windfall may look smart for now, but transformative technologies tend to disrupt the incumbents they first enrich.

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CONTEXT NEWS

Bill Ackman posted on X on May 15 that his hedge fund, Pershing Square Capital Management, has taken a new stake in Microsoft, betting that the software giant’s investments in artificial intelligence aren’t reflected in its share price.

Christopher Hohn’s hedge fund TCI sold almost all of its $8 billion stake in Microsoft, according to an investor letter reported by the Financial Times on May 8. One of the world’s best performing hedge funds, TCI held a large stake in the tech giant for much of the past decade, but cut its holding from 10% to 1% by the end of March.