3. Microsoft Corporation (NASDAQ:MSFT)
11 Capital Partners’ Stake Value: $39,264,000
Percentage of 11 Capital Partners’ 13F Portfolio: 7.94%
Number of Hedge Fund Holders: 250
Microsoft Corporation (NASDAQ:MSFT), one of the Big Five American technology firms, is one of the most significant holdings of 11 Capital Partners, with the hedge fund owning 139,275 shares of the company, worth $39.2 million. The stock accounts for 7.94% of the fund’s Q3 13F portfolio.
Microsoft Corporation (NASDAQ:MSFT) posted its Q4 financial results on January 25, announcing earnings per share of $2.48, beating estimates by $0.16. Microsoft Corporation (NASDAQ:MSFT)’s revenue jumped 20.09% year-over-year to $51.73 billion, outperforming estimates by $938.45 million.
Tigress Financial analyst Ivan Feinseth on February 4 raised the price target on Microsoft Corporation (NASDAQ:MSFT) to $411 from $366 and kept a Buy rating on the shares after the company reported “another strong quarter”. According to the analyst, a strong revenue and profit driver for Microsoft Corporation (NASDAQ:MSFT) is the ongoing enterprise digitization trend that continues to drive increasing cloud migration.
In the third quarter of 2021, the long hedge fund positions in Microsoft Corporation (NASDAQ:MSFT) increased to 250, up from 238 funds in the preceding quarter. Arrowstreet Capital is one of the prominent Microsoft Corporation (NASDAQ:MSFT) stakeholders, with roughly 18 million shares worth over $5 billion.
Here is what Alger Spectra Fund has to say about Microsoft Corporation (NASDAQ:MSFT) in its Q4 2021 investor letter:
“Class A shares of the Alger Spectra Fund underperformed the Russell 3000 Growth Index during the fourth quarter of 2021. Microsoft Corp. was among the top contributors to performance. Microsoft is a Positive Dynamic Change beneficiary of corporate America’s transformative digitization. Microsoft’s CEO believes technology spending as a percent of GDP is likely to jump from about 5% today to 10% in a few years and that Microsoft will continue to take market share Microsoft’s enterprise cloud product, Azure, is rapidly growing and accruing market share. Microsoft reported that Azure grew 50% inthe past quarter. This high unit volume growth is a primary driver of the company’s higher share price, but strong operating execution has enabled margin expansion that has also helped to increase forward earnings estimates. We believe Microsoft’s subscription-based software offerings and cloud computing services have a durable growth profile because they enhance customers’ growth initiatives and help them to diminish costs. Additionally, investors appreciate Microsoft’s strong free cash flow generation and its return of cash to shareholders in the form of dividends and share repurchases.”
