Should You Still Consider Investing in Microsoft (MSFT)?

Motiwala Capital, an investment management firm, published its fourth-quarter 2021 investor letter – a copy of which can be seen here. In 2021, the fund’s core US capital appreciation gained +26.5% net of fees. US markets continued their winning ways with the S&P 500 index returning 28.7%. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Motiwala Capital, in its Q4 2021 investor letter, mentioned Microsoft Corporation (NASDAQ:MSFT) and discussed its stance on the firm. Founded in 1975, Microsoft Corporation (NASDAQ:MSFT) is a Redmond, Washington-based multinational technology conglomerate holding company with a $2.3 trillion market capitalization, and is currently spearheaded by its CEO, Satya Nadella. Microsoft Corporation (NASDAQ:MSFT) delivered a -7.56% return since the beginning of the year, while its 12-month returns are up by 24.40%. The stock closed at $310.88 per share on April 05, 2022.

Here is what Motiwala Capital has to say about Microsoft Corporation (NASDAQ:MSFT) in its Q4 2021 investor letter:

“Microsoft (NASDAQ:MSFT) re-enters our portfolio after a long gap. MSFT sells enterprise and consumer software products as well as hardware products such as the Xbox video game console and Surface laptops. All business segments experienced double-digit revenue growth and earnings per share have compounded in the mid-double digits over the last 5 years. We believe MSFT continues this momentum in the years ahead.”

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Our calculations show that Microsoft Corporation (NASDAQ:MSFT) ranks 2nd on our list of the 30 Most Popular Stocks Among Hedge Funds. Microsoft Corporation (NASDAQ:MSFT) was in 262 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 250 funds in the previous quarter. Microsoft Corporation (NASDAQ:MSFT) delivered a -1.74% return in the past 3 months.

In April 2021, we also shared another hedge fund’s views on Microsoft Corporation (NASDAQ:MSFT) in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

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