5 Stocks to Buy According to Kevin McCarthy’s Breakline Capital

3. Microsoft Corporation (NASDAQ:MSFT)

Breakline Capital’s Stake Value: $5,149,000
Percentage of Breakline Capital’s Portfolio: 7.9%
Number of Hedge Fund Holders: 259

Microsoft Corporation (NASDAQ:MSFT) is a technology business that provides personal computers, cloud computing platforms, and software. DocuSign, Inc. (NASDAQ:DOCU) and Microsoft Corporation (NASDAQ:MSFT) announced an expansion of their global strategic relationship on June 7. New DocuSign Agreement Cloud connectors and capabilities will be available across Microsoft’s business platforms as part of the extended cooperation.

Microsoft Corporation (NASDAQ:MSFT) was assigned an Overweight rating by Barclays analyst Raimo Lenschow on June 10, although he reduced his price target from $363 to $335. According to the analyst, investors are overly focused on Azure for Microsoft Corporation (NASDAQ:MSFT)’s investment thesis.

At the end of the first quarter of 2022, 259 hedge funds in the database of Insider Monkey held stakes worth $65.64 billion in Microsoft Corporation (NASDAQ:MSFT), down from 262 the preceding quarter worth $75.67 billion.

Breakline Capital first bought a stake in Microsoft Corporation (NASDAQ:MSFT) in the fourth quarter of 2017. However, the hedge fund lightened its exposure in the first quarter of 2022, reducing its stake by 26% to 16,700 shares valued at $5.15 million.

In its Q1 2022 investor letter, Polen Capital mentioned Microsoft Corporation (NASDAQ:MSFT). Here is what the fund said:

“Microsoft’s business is firing on all cylinders and continue to enjoy an acceleration in their respective fundamentals because of the increase in digitization around the world. Nearly every company today is searching for ways to become more digital, and both Microsoft and Accenture are positioned to provide many of the solutions these companies seek. This inflection in fundamentals was not lost on the market, and each business’s stock performed exceptionally well in 2021. In fact, they represented two of the three top absolute performers for the Global Growth Portfolio last year. As a result, their respective stocks are currently more fully priced. As such, we lowered Microsoft from our largest position within the Portfolio. We maintain high conviction in Microsoft and plan to own it for many years, but recognize the increase in its prices.”