4 Stocks to Buy According to Alexander Captain’s Cat Rock Capital

3. Microsoft Corporation (NASDAQ:MSFT)

Cat Rock Capital’s Stake Value: $69,601,000
Percentage of Cat Rock Capital’s 13F Portfolio: 14.81%
Number of Hedge Fund Holders: 258

Cat Rock Capital bought a stake in the tech giant Microsoft Corporation (NASDAQ:MSFT) in the first quarter of 2020. According to the 13F filings for the second quarter of 2022, Cat Rock Capital holds 271,000 shares of Microsoft Corporation (NASDAQ:MSFT), amounting to more than $69.60 million and representing 14.81% of the fund’s portfolio value.

As part of its multi-city data center strategy for India, Microsoft Corporation (NASDAQ:MSFT), a leading provider of US-based software, intends to build a sizable hyper-scale data center in Pune. Accordingly, the business paid Finolex Industries $39.92 million for commercial land in Pune.

In anticipation of Microsoft Corporation (NASDAQ:MSFT)’s fiscal Q1 earnings on October 25, Deutsche Bank analyst Brad Zelnick retained a ‘Buy’ rating on the stock on October 18 while trimming his price objective from $330 to $315. According to Zelnick, although investors are aware of the dismal consumer history, particularly regarding PCs and Windows, they believe that Microsoft’s commercial and corporate businesses have not become markedly worse and are still holding up.

Among the hedge funds tracked by Insider Monkey, 258 were long Microsoft Corporation (NASDAQ:MSFT) at the end of Q2 2022, compared to 259 funds in the last quarter.

Lakehouse Capital, an investment management company, mentioned Microsoft Corporation (NASDAQ:MSFT) in its September 2022 investor letter. Here is what the fund said:

“During the month, the Fund initiated a new position in Microsoft Corporation (NASDAQ:MSFT), a name that is no doubt familiar to our investors. The company was founded by Bill Gates and Paul Allen in a friend’s garage in 1975 and began dominating the operating system market with MS-DOS by the mid-1980s. The company has come a long way since then and is now widely considered the most critical and indispensable IT mega-vendor for businesses globally. In addition to its well-known Windows operating systems and Office productivity suite, the company has a broad portfolio of strategic products, including a rapidly growing public cloud business in Azure and a sizeable gaming presence.…” (Click here to read the full text)