Billionaire David Tepper Doesn’t Like Most Stocks But He Likes These 5

3. Microsoft Corporation (NASDAQ:MSFT)

Value of Appaloosa Management LP’s 13F Position: $422.27 million
Number of Hedge Fund Shareholders: 300

Microsoft Corporation (NASDAQ:MSFT) was a popular stock among hedge funds in the second quarter of 2023, according to Insider Monkey’s database of 910 hedge funds. The database revealed that 300 hedge funds had a stake in the company in that quarter.

Here is what ClearBridge Investments said about Microsoft Corporation (NASDAQ:MSFT) in its Q2 2023 investor letter:

“We initiated a small position in Microsoft Corporation (NASDAQ:MSFT) during the quarter, which may seem surprising given our concerns about index concentration. However, we seized the opportunity on a compelling entry point below our business value estimate, due to an anticipated acceleration of demand for Microsoft’s Azure cloud business and incremental revenues from integration of Microsoft’s AI Copilot program into its office platform. We believe this could support double-digit growth, while simultaneously solidifying Microsoft’s competitive position as an AI winner. Even as a small position, we believe Microsoft provides a large portfolio construction benefit given low correlation to the rest of the portfolio.”

[/company-follow-email]