Janus Henderson Investors, an investment management company, released its first-quarter 2026 investor letter for the “Global Sustainable Equity Fund”. A copy of the letter can be downloaded here. In the quarter, the Fund returned -3.07%, slightly better than the MSCI World Index’s -3.57%. Strong stock selection in information technology, especially companies tied to artificial intelligence (AI) infrastructure, supported the relative performance. However, holdings sensitive to AI disruption fears underperformed, and minimal energy exposure also impacted results. The year began positively, but a sharp decline followed, largely due to the conflict between the U.S. and Israel with Iran, as well as concerns about AI disruption and overinvestment. Despite this volatility, energy emerged as the only strong performer. The firm remains committed to investing in companies with pricing power, durable franchises, and long-term themes that can withstand volatility and grow over time. For insights into their key selections for 2026, please review the Strategy’s top five holdings.
In its first-quarter 2026 investor letter, Janus Henderson Global Sustainable Equity Fund highlighted Microsoft Corporation (NASDAQ:MSFT). Microsoft Corporation (NASDAQ:MSFT) is a multinational software company that develops and supports software, services, devices, and solutions, holding dominant positions in software, cloud infrastructure, generative AI, and gaming. On June 24, 2026, Microsoft Corporation (NASDAQ:MSFT) closed at $365.46 per share. One-month return of Microsoft Corporation (NASDAQ:MSFT) was -11.70%, and its shares lost 25.05% over the past 52 weeks. Microsoft Corporation (NASDAQ:MSFT) has a market capitalization of $2.71 trillion.
Janus Henderson Global Sustainable Equity Fund stated the following regarding Microsoft Corporation (NASDAQ:MSFT) in its Q1 2026 investor letter:
“Microsoft Corporation (NASDAQ:MSFT) shares underperformed amid concerns over near-term returns from elevated cloud infrastructure investment and slower growth in the legacy software segment. While we trimmed the position in favor of more attractively valued opportunities, our long-term thesis remains intact. Microsoft benefits from powerful network effects and a deeply embedded ecosystem across productivity, cloud, and developer platforms, reinforcing its competitive moat. Its carbon-neutral Azure cloud platform plays a critical role in enabling businesses to decarbonize energy-intensive computing operations across sectors globally.”
Microsoft Corporation (NASDAQ:MSFT) ranks second on our list of 40 Most Popular Stocks Among Hedge Funds. According to our database, 282 hedge fund portfolios held Microsoft Corporation (NASDAQ:MSFT) at the end of the first quarter, compared to 312 in the previous quarter. In the third quarter of fiscal 2026, Microsoft Corporation (NASDAQ:MSFT) reported revenue of $82.9 billion, marking an increase of 18% and 15% in 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 most promising AI stocks to buy and hold for the next years. In addition, please check out our hedge fund investor letters Q1 2026 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.
