Microsoft (MSFT): Leading Investors Like What They See

“Cloud computing has enabled Adobe Systems Incorporated (“Adobe”) and Microsoft to build two of the largest software as a service (“SaaS”) businesses in the world with Creative Cloud and Office 365. Importantly, with each, a direct connection with the end user has been established allowing a real-time study of usage patterns, near-continuous product updates and a host of other features. This was not possible when their software was indirectly distributed and ran on the island of a PC or a corporate data center. Today, files can sync seamlessly in the cloud across devices and offices. The cloud processing power also allows for heavy duty computation, including de-blurring photos and videos, 3D simulations, fast search queries across disparate data sources and almost limitless data storage. Adobe and Microsoft are now benefiting from the information that comes with having direct insight into what the customer wants, empowering them to continue to improve their products, giving the customer more and then getting paid more as a result.”

Keeping this in mind, we’re going to take a peek at the recent hedge fund action regarding Microsoft Corporation (NASDAQ:MSFT).

Hedge fund activity in Microsoft Corporation (NASDAQ:MSFT)

At Q4’s end, a total of 140 of the hedge funds tracked by Insider Monkey held long positions in this stock, an increase of 24% from the previous quarter. With hedge funds’ sentiment swirling, there exists a select group of noteworthy hedge fund managers who were upping their stakes significantly (or had already accumulated large positions).

According to Insider Monkey’s hedge fund database, Ubben’s ValueAct Capital has the biggest position in Microsoft Corporation (NASDAQ:MSFT), worth close to $3.14 billion, amounting to 21.7% of its total 13F portfolio. The second largest stake is held by Boykin Curry of Eagle Capital Management, with a $1.73 billion position; the fund has 7.1% of its 13F portfolio invested in the stock. Other members of the smart money that hold long positions include First Eagle Investment Management, Stephen Mandel’s Lone Pine Capital, and Ken Fisher’s Fisher Asset Management.

As aggregate interest increased, some big names were leading the bulls’ herd. Steadfast Capital Management, managed by Robert Pitts, initiated the largest call position in Microsoft Corporation (NASDAQ:MSFT). Steadfast Capital Management had $309 million invested in the position at the end of the quarter. Beeneet Kothari’s Tekne Capital Management also made a $277.4 million investment in the stock during the quarter. Some of the other funds with new positions in the stock are James Crichton’s Hitchwood Capital Management, Panayotis Takis Sparaggis’ Alkeon Capital Management, and Aaron Cowen’s Suvretta Capital Management.