Billionaire investor Bill Ackman recently bought stock in (NASDAQ: GOOG) (NASDAQ: GOOGL) for his hedge fund Pershing Square Capital Management. He started the position during the first quarter, but news of the purchase only surfaced this week, days after Alphabet introduced new artificial intelligence (AI) products at its I/O developer conference.

Of course, those products had nothing to do with Ackman's decision, but as one of the foremost AI companies in the world, Alphabet is well positioned to benefit from soaring demand for AI software. That likely contributed to the decision, and Ackman seems to have a great deal of confidence in the company. His investment in Alphabet is worth more than $1 billion, split between Class A and Class C shares, and it accounts for over 10% of his portfolio.

So what? Pershing Square absolutely crushed the S 500 (SNPINDEX: ^GSPC) during the last five years. The hedge fund soared 239% in that time, but the benchmark S 500 index increased just 70%. That makes Ackman a great source of inspiration, and given the latest addition to his portfolio, investors should take a closer look at Alphabet.

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Source Fool.com