Is Microsoft (MSFT) Still a Great Investment Choice?

Polen Capital, an investment management firm, published its “Polen Global Growth” third quarter 2021 investor letter – a copy of which can be downloaded here. A quarterly gross return of -3.03% was delivered by the fund for the third quarter of 2021, versus the MSCI AllCountry World Index (the “Index”)’s return of -1.06% for the same period. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.

Polen Global Growth, 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 $2.6 trillion market capitalization. MSFT delivered a 53.43% return since the beginning of the year, while its 12-month returns are down by 60.66%. The stock closed at $339.12 per share on November 17, 2021.

Here is what Polen Global Growth has to say about Microsoft Corporation  in its Q3 2021 investor letter:

“After modest Portfolio activity during the second quarter of 2021, activity increased during the third quarter. We would broadly characterize the various trades into two objectives: 1) managing risk, and 2) managing valuation. In both cases, we aimed to maintain the Portfolio’s growth profile. In aggregate, we believe we were able to increase expected earnings growth while reducing risk and the overall portfolio valuation… We also trimmed Microsoft, which had grown to nearly 10% of the Portfolio. At an 8% weighting, it still represents one of our largest positions.”

Image by Tawanda Razika from Pixabay

Based on our calculations, Microsoft Corporation (NASDAQ: MSFT) ranks 3rd in our list of the 30 Most Popular Stocks Among Hedge Funds. MSFT was in 238 hedge fund portfolios at the end of the first half of 2021, compared to 251 funds in the previous quarter. Microsoft Corporation (NASDAQ: MSFT) delivered a 14.99% return in the past 3 months.

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