Five Stocks That This Billion-Dollar Fund Loves

#3 Microsoft Corporation (NASDAQ:MSFT)

Shares held (as of September 30): 15.54 million
Total Value (as of September 30): $687.91 million
Percent of Portfolio (as of September 30): 6.07%

Highfields increased its stake in Microsoft Corporation (NASDAQ:MSFT) by 48% in the third quarter to 15.54 million shares. More than a billion people use Microsoft (MSFT) products at home or at work. Therefore, Microsoft’s software is the essential plumbing that makes many businesses go. Under the leadership of CEO Satya Nadella, Microsoft is also rapidly moving beyond the PC and into the forefront of many long-term growth sectors such as cloud computing and augmented reality. Microsoft shares have rallied by 23.64% year-to-date and yield an attractive 2.58% dividend yield.

#2 CBS Corporation (NYSE:CBS)

Shares held (as of September 30): 18.29 million
Total Value (as of September 30): $729.6 million
Percent of Portfolio (as of September 30): 6.44%

Although CBS Corporation (NYSE:CBS)’s cable network revenue fell by 15.7% year-over-year to $526 million, the company’s overall third quarter revenue declined by just 3% as strength from other divisions offset cable’s weakness. The broadcast network and media company is adjusting to the streaming age, having announced that it will reboot the Star Trek TV franchise and eventually provide it exclusively on CBS All Access, the network’s $5.99/month online offering. If CBS succeeds to become another Netflix, look for shares to rally. Analysts are optimistic with a $63 consensus price target.