Top 5 Stock Picks of Charles Clough’s Clough Capital Partners

In this piece, we’ll take a look at the Top 5 Stock Picks of Charles Clough’s Clough Capital Partners. For more stocks, the risk/reward, and the methodology of this list, head on to the Top 10 Stock Picks of Charles Clough’s Clough Capital Partners.

5. Microsoft Corporation (NASDAQ:MSFT)

Clough Capital Partners Stake: $32,873,000 

Percentage of Clough Capital Partners’ Portfolio: 4.07%

Number of Hedge Fund Holders: 258

Microsoft Corporation (NASDAQ:MSFT) is one of the biggest technology companies in the world, famous for its Windows operating system and Office products. Amidst a broader market tech sell-off, Charles Clough also reduced his exposure to the I.T company by 44% during Q2 2022. The fund’s investment in Microsoft Corporation (NASDAQ:MSFT) at the end of the second quarter amounted to over $32 million.

On October 4, 2022, Timothy Horan, an analyst at Oppenheimer, reduced his price target on Microsoft Corporation (NASDAQ:MSFT) to $275. The analyst believes that due to the strengthening of the U.S. dollar, there would be a negative F/X impact on the company’s bottom-line in 2023 and 2024.

As per Insider’s Monkey database, 258 hedge funds were long Microsoft Corporation (NASDAQ:MSFT) at the end of Q2 2022. Fisher Asset Management had the highest stake in the company, amounting to a value of over $7 billion. The fund increased its stake during the second quarter by 3%.

Here is what Baron Funds had to say about Microsoft Corporation (NASDAQ:MSFT) in its second-quarter 2022 investor letter:

Shares of Microsoft Corporation, a leading global provider of software solutions, declined 16.6% in the quarter along with the broader software group as well as due to growing concerns of a potential macro-driven slowdown. This is despite the company posting strong quarterly financial results and successfully absorbing headwinds from the war in Ukraine. The company had 21% revenue growth, 23% operating income growth, and 35% growth in Microsoft Cloud (all year-over-year in constant currency), which now represents 47% of total revenues.

As discussed above, we continue to believe Microsoft remains a durable and growing business as companies across all industries look to digitally transform, taking advantage of the continuously expanding solution set Microsoft has to offer.