Legendary investor Bill Ackman has been buying up Magnificent Seven stocks in recent years, adding the likes of Amazon.com Inc (NASDAQ:AMZN), Alphabet Inc (NASDAQ:GOOG)(NASDAQ:GOOGL) and Meta Platforms (NASDAQ:META) to the Pershing Square portfolio, which is tracked by Pershing Square USA (NYSE:PSUS).

A new bet on Microsoft Corporation (NASDAQ:MSFT) in the first quarter came at the expense of Alphabet shares, a move that has so far wiped out potential profits for investors.

Ackman's Microsoft for Alphabet Swap

In the first quarter, Ackman bought 5,654,078 shares of Microsoft, making the stock the fourth largest holding in the Pershing Square portfolio at the end of the quarter.

The Magnificent Seven positions at the end of the first quarter were the following:

Amazon.com: 2nd largest holding, 17% of assets

Microsoft: 4th largest holding, 15% of assets

Meta: 6th largest holding, 11% of assets

Alphabet Class C (GOOG): 9th largest holding, 0.7% of assets

Alphabet Class A (GOOGL): 11th largest holding, 0.1% of assets

In the first quarter, Ackman sold off 95% of holdings in each of Alphabet Class A and ...