ValueAct Capital Buys More Than $116 Million in Microsoft (MSFT) Shares

On Monday May 12, ValueAct Capital, managed by Jeffrey Ubben, declared the purchase of more than 2.95 million shares of Microsoft Corporation (NASDAQ:MSFT), which already is the fund’s most valuable equity holding. The transaction was reported at the U.S. Securities and Exchange Commission via a Form 4 filing presented by Mason G Morfit, President of ValueAct Capital and a Board Director at Microsoft -which obliges him to declare any stock purchases as an insider. The acquisitions took place on May 8th and May 9th, through several transactions, for prices ranging from $39.49 per share to $39.59 per share. Following, ValueAct owns more than 74 million shares of the company.

Microsoft is a $330 billion market cap tech company that needs no introduction whatsoever. Fundamentally, the company looks quite decent: it boasts margins and returns slightly above its industry’s average, holds relatively low debt levels, and its stock trades at only 14.9 times the company’s earnings (see Key Stats below).

 

Microsoft Fundamentals

Source: Morningstar

 

In addition to ValueAct, several analysts and major hedge funds also seem to feel bullish about this stock. Donald Yacktman’s Yacktman Asset Management recently declared holding more than 32.9 million shares of the company by the end of Q1 2014, and Jean-Marie Eveillard’s First Eagle Investment Management last reported owning 32.18 million shares of the company –up 3% in relation to the previous quarter.  Another important Microsoft bull is Wells Fargo & Co (NYSE:WFC), which increased its stakes by 1% over Q1, and now owns roughly 37.6 million shares.

VALUEACT CAPITAL

ValueAct is a long-term focused fund that usually holds a small number of positions (currently, 12), which are usually held for several years. This strategy provides the fund with higher returns. Despite the limited number of stocks that ValueAct owns, the market value of its portfolio surpasses $12 billion. Trailing Microsoft, the fund’s largest stakes are placed in Valeant Pharmaceuticals Intl Inc (NYSE:VRX) and Motorola Solutions Inc (NYSE:MSI). These three holdings account for approximately 55% of the total value of its equity portfolio.

 

Disclosure: Javier Hasse holds no position in any stocks mentioned

Dividend Stock Alert - Billionaire Robbins' Top Dividend Idea With 70% Upside Potential

Get Paid 3.5% Per Year While Waiting For The Stock Appreciate 70%

Larry Robbins' Glenview Capital Opportunity Fund returned 101.7% in 2013 and Robbins personally made $750 million. The same fund returned 25.3% in 2014. In this FREE REPORT we will share Robbins' top dividend idea that yields 3.5% and has been increasing its dividends for 39 consecutive years. Robbins thinks the stock has the potential to appreciate 70%.

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Click here to Read Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 74 percentage points in 2.5 years. Our beta is only 1.2 (download a FREE newsletter and see the details inside)

Lists

Best Selling Magazines in the World

Shortest People in History

The Most Celebrated Holidays in the World

Most Expensive Handbag Brands in the World

Top Selling Comic Book Issues of this Century

The Most Powerful Women in Politics

Best Paid DJs

Most Rebellious Female Artists

Best Paid TV Actresses of 2014

Best Paid Actors of 2014

Most Expensive Horses in the World

Tallest People Ever

Most Encouraging Feminist Celebrities

Best Paid Supermodels of 2014

Top 10 Suburbs for Retirement in 2015

10 Wealthiest Cities in America

Top 10 TED Talks for Entrepreneurs

Best TED Talks on Education

25 Most Dangerous Places to Live in America

Top 10 Ski Resorts in the United States – 2014 List

Top 10 Most Remote Places in the World

Most Visited Museums in the United States

Wealthiest Photographers in the World

Most Famous Gay Athletes

The World’s Most Famous Circuses

Best Hair Stylists

Most Popular NASCAR Drivers

The Best Romance Movies of all Time

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!