Munro Partners, an investment management firm, released its “Munro Global Growth Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the June quarter, the Fund returned 16.1%. The Fund’s long positions and option hedging contributed to the performance, while short positions and currency detracted. The second quarter saw increased volatility in equity markets due to trade concerns between the US and other countries worldwide. The US Administration’s tariff halt led to a significant surge in markets, particularly the S&P 500 and Nasdaq. Geopolitical tensions between Israel and Iran dominated headlines near the conclusion of the quarter; however, markets responded positively to US intervention and the ensuing ceasefire. For more information on the fund’s best picks in 2025, please check its top five holdings.
In its second-quarter 2025 investor letter, Munro Global Growth Fund highlighted stocks such as Microsoft Corporation (NASDAQ:MSFT). Microsoft Corporation (NASDAQ:MSFT) is a multinational software company that develops and supports software, services, devices, and solutions. The one-month return of Microsoft Corporation (NASDAQ:MSFT) was -1.64%, and its shares gained 21.23% of their value over the last 52 weeks. On August 21, 2025, Microsoft Corporation (NASDAQ:MSFT) stock closed at $504.24 per share, with a market capitalization of $3.757 trillion.
Munro Global Growth Fund stated the following regarding Microsoft Corporation (NASDAQ:MSFT) in its second quarter 2025 investor letter:
Microsoft Corporation (NASDAQ:MSFT) contributed 138bps to fund performance for the quarter. Microsoft is a global technology leader with a diversified suite of products spanning across enterprise software, cloud computing, personal computing, and gaming. The company is uniquely positioned to benefit from a strong presence across the infrastructure, platform and application layers of the AI stack (most notably through Azure AI and Copilot). Just two years into the AI era, its AI business has already surpassed an annual revenue run rate of US$13 billion. We believe Microsoft will play a pivotal role in enterprises moving decisively from experimenting with AI to wide-scale implementation of AI through providing leading AI infrastructure and transforming the way consumers and businesses use software to improve productivity.
Despite its clear moat in AI, the company’s share price came under pressure earlier in the year due to concerns about near term customer demand, data centre lease cancellations, and uncertainties surrounding its evolving partnership with OpenAI. However, Microsoft shares soon rebounded to record highs after the company delivered better-than-expected earnings, with Azure growth reaccelerating to the mid-30% range. Investor sentiment reversed dramatically as management attributed the reacceleration to structural tailwinds including surging AI demand, expanded AI capacity, accelerating enterprise cloud migration, and large commitments from OpenAI for both AI and non-AI Azure services. With agentic AI adoption still in its early innings, M365 Copilot stands out as another growth driver, as enterprises look to expand usage and boost operational efficiency. Management’s disciplined approach to cost control have also provided further upside, as evidenced in their ability to keep operating expense growth flat while revenue growth reaccelerated in the recent quarter…” (Click here to read the full text)
A development team working together to create the next version of Windows.
Microsoft Corporation (NASDAQ:MSFT) is in second position our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 294 hedge fund portfolios held Microsoft Corporation (NASDAQ:MSFT) at the end of the first quarter compared to 284 in the previous quarter. In the fourth quarter of fiscal year 2025, Microsoft Corporation (NASDAQ: MSFT) reported revenue of $76.4 billion, representing an 18% increase, or 17% when adjusted for constant currency. While we acknowledge the risk and potential of Microsoft Corporation (NASDAQ:MSFT) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Microsoft Corporation (NASDAQ:MSFT) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Microsoft Corporation (NASDAQ:MSFT) and shared the list of best stocks to buy now according to AI. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
