Top 5 Stock Picks of Alexander Captain’s Cat Rock Capital

In this article, we discuss the top 5 stock picks of Alexander Captain’s Cat Rock Capital. If you want to read our detailed analysis of the Captain’s investment philosophy and performance, go directly to Top 10 Stock Picks of Alexander Captain’s Cat Rock Capital.

5. Microsoft Corporation (NASDAQ:MSFT)

Cat Rock Capital’s Stake Value: $72,453,000
Percentage of Cat Rock Capital’s 13F Portfolio: 7.53%
Number of Hedge Fund Holders: 259

Microsoft Corporation (NASDAQ:MSFT) develops, licenses, and sustains software, services, hardware, and solutions globally. According to Insider Monkey’s data, 259 hedge funds were bullish on Microsoft Corporation (NASDAQ:MSFT) at the end of March 2022, down from 262 funds in the last quarter. Alexander Captain’s Cat Rock Capital owned 235,000 Microsoft Corporation (NASDAQ:MSFT) shares in the first quarter of 2022, worth $72.45 million, representing 7.53% of the total 13F portfolio.

In the company’s Q2 earnings report published on July 26, Microsoft Corporation (NASDAQ:MSFT)’s EPS totaled $2.23, missing estimates by $0.07. In addition, its $51.87 billion revenue missed the revenue estimates by $490 million.

Here is what Carillon Tower Advisers has to say about Microsoft Corporation (NASDAQ:MSFT) in its Q1 2022 investor letter:

“Stock selection contributed the most while sector allocation was also positive. An underweight to communication services and an overweight to energy helped performance, while an underweight to consumer staples and an overweight to materials detracted. Stock selection was strong within healthcare and materials but was weak within information technology and industrials. Microsoft (NASDAQ:MSFT) reported positive results driven by personal computing strength, but analysts were especially positive on its growth outlook for its Azure cloud-computing services.”