Billionaire Dan Loeb Cashed Out of Microsoft Stock. Shares Are Down 14.2% YTD.

Billionaire hedge fund veteran Dan Loeb once waved the Microsoft Corporation (MSFT) flag louder than most institutional investors on Wall Street. During Q3 2025, the Third Point founder doubled down on Microsoft, turning the stock into the Fund’s third largest holding at 6.9% of the portfolio, an unequivocal bet on the tech giant's artificial intelligence (AI) ambitions.

Yet, the confidence vanished in one fell swoop during Q1 2026 after Third Point completely dumped its 925,000 share Microsoft position, ending an investment the firm had carried since late 2022. Loeb pulled the plug as he steered capital away from mega-cap technology names toward event-driven investing, activism, and private credit opportunities that he described as “massive.”