In this article, we discuss billionaire Steve Cohen’s top 5 stock picks. For Cohen’s investment philosophy and his comments on certain stocks, please see Billionaire Steve Cohen’s Top 10 Stock Picks.
5. Microsoft Corporation (NASDAQ: MSFT)
Percent of Steve Cohen’s 13F Portfolio: 1.11%
No. of Hedge Fund Holders: 258
Microsoft ranks 5th on the list of billionaire Steve Cohen’s top 10 stock picks. The fund has a $229.2 million stake in the Redmond software giant. Goldman Sachs recently added MSFT on its conviction list, citing increasing digital spending. The firm set a price target of $315 for the stock. Major hedge funds are bullish on MSFT, including Tiger Cub Lee Ainslie and “Europe’s most feared” investor Chris Hohn.
A total of 258 hedge funds tracked by Insider Monkey were bullish MSFT at the end of the fourth quarter, up from 234 funds a quarter earlier. MSFT ranks 2nd in our list of the 30 Most Popular Stocks Among Hedge Funds: 2020 Q4 Rankings.
“Microsoft’s stock also had a great year, returning 42.4% on increased earnings per share of 30%. The main driver of their growth in recent years is their cloud computing business, and while it did see a bump in demand as office workers went remote, most of the growth is from the continued shift of corporate computing systems to “the cloud.” We think this shift is still in its early stages.”