Top 5 Stock Picks of Anand Desai’s Darsana Capital Partners

In this article, we will discuss the top 5 stock picks of Anand Desai’s Darsana Capital Partners. If you want to read our detailed analysis of Anand Desai’s history, investment philosophy, and hedge fund performance, go directly to the Top 10 Stock Picks of Anand Desai’s Darsana Capital Partners.

5. Microsoft Corporation (NASDAQ:MSFT)

Desai’s Stake Value: $270,900,000

Percentage of Anand Desai’s 13F Portfolio: 7.7%

Number of Hedge Fund Holders: 238

Microsoft Corporation (NASDAQ:MSFT) is one of the biggest names in the world with its services and products being used in all corners of the world.

On September 17, Barclays analyst Raimo Lenschow maintained an Overweight rating on Microsoft’s shares, increasing the price target from $330 to $345.

Darsana Capital Partners owns 1 million shares in the company worth $270 million.

In its Q2 2021 investor letter, Baron Opportunity Fund highlighted a few stocks, and Microsoft Corp. (NASDAQ:MSFT) is one of them. Here‘s what the fund said about the company:

“Shares of Microsoft Corporation, a cloud-software leader and provider of software productivity tools and infrastructure, rose during the quarter following a strong earnings report highlighting solid demand for its broad product stack and continued momentum migrating its business to the cloud. Microsoft was a top contributor in the period because it trades at reasonable free cash flow and earnings valuations, has cloud and digital transformation tailwinds at its back, reported a solid March quarter, and beat Street expectations by a wide margin. Microsoft’s results continued to be strong across the board, with Azure cloud computing revenues up 46% in constantcurrency (“cc”) terms and commercial cloud bookings growth of 38% cc, the best in years. Microsoft also reported robust profitability growth, with operating income expanding 31% and GAAP earnings up 45%. We believe the company is well positioned for continued solid growth and profitability through market share gains as more companies look to transform and digitize their businesses as they move operations to the cloud.”