Here’s What Makes Microsoft Corp. (MSFT) A Great Long-Term Investment

Baron Funds, an asset management firm, published its “Baron Opportunity Fund” third quarter 2021 investor letter – a copy of which can be downloaded here. A decline of 2.03% was delivered by the fund’s institutional shares for the third quarter of 2021. For the period, the Fund trailed the Russell 3000 Growth Index, which rose 0.69%, and the S&P 500 Index, which increased 0.58%. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.

Baron Opportunity Fund, in its Q3 2021 investor letter, mentioned Microsoft Corporation (NASDAQ: MSFT) and discussed its stance on the firm. Microsoft Corporation is a Redmond, Washington-based technology company with a $2.5 trillion market capitalization. MSFT delivered a 50.60% return since the beginning of the year, while its 12-month returns are up by 58.15%. The stock closed at $334.97 per share on December 08, 2021.

Here is what Baron Opportunity Fund has to say about Microsoft Corporation  in its Q3 2021 investor letter:

“Shares of Microsoft Corporation, a cloud-software leader and provider of software productivity tools and infrastructure, rose during the quarter following a strong earnings report highlighting solid demand for its broad product stack and continued momentum migrating its business to the cloud. Microsoft’s results continued to be strong across the board, with total revenue beating Street estimates by 4.5%, an acceleration in Commercial Cloud revenue to 31% constant-currency growth, a four-point improvement in Commercial Cloud gross margins (to 70% from 66%), and GAAP earnings up 42%. We believe the company is positioned to deliver 13% to 15% organic growth over the next three years, underpinned by TAM expansion across its disruptive cloud product portfolio, as more companies look to transform and digitize their businesses, as well as strong operating leverage as its cloud products gain scale.”

Image by Tawanda Razika from Pixabay

Based on our calculations, Microsoft Corporation (NASDAQ: MSFT) tops our list of the 30 Most Popular Stocks Among Hedge Funds. MSFT was in 250 hedge fund portfolios at the end of the third quarter of 2021, compared to 238 funds in the previous quarter. Microsoft Corporation (NASDAQ: MSFT) delivered an 11.58% return in the past 3 months.

Disclosure: None. This article is originally published at Insider Monkey.