5 Most Popular Mutual Funds on Reddit

4. Vanguard Windsor II Fund Investor Share (NASDAQ:VWNFX)

Vanguard Windsor II Fund Investor Share (NASDAQ:VWNFX) is a fund that invests in companies that fall in the large and mid-cap domain and whose stocks are considered by an advisor to be undervalued. Undervalued stocks are generally trading at prices below their earnings and book value. 

A top holding of Vanguard Windsor II Fund Investor Share (NASDAQ:VWNFX) is Microsoft Corporation (NASDAQ:MSFT), a Washington-based technology firm. Among the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in Microsoft Corporation (NASDAQ:MSFT), with 26.8 million shares worth more than $9 billion.

In its Q4 2021 investor letter, Vulcan Value Partners, an investment management firm, highlighted a few stocks and Microsoft Corporation (NASDAQ:MSFT) was one of them. Here is what the fund said:

“Microsoft Corporation (NASDAQ:MSFT) was a material contributor during the quarter. It is one of the highest quality companies in the world. We believe it has tremendous competitive advantages in its consumer and commercial Microsoft Office products as well as in its server and tools and Azure divisions. Over the last several years, Microsoft Corporation (NASDAQ:MSFT) has been implementing a successful transition from a traditional software license and maintenance revenue model to a subscription revenue model. The company remains competitively entrenched, produces strong free cash flow, and has a strong balance sheet.”