Top 5 Stock Picks of John Overdeck and David Siegel’s Two Sigma Advisors

1. Microsoft Corporation (NASDAQ:MSFT)

Two Sigma Advisors’ Stake Value: $943,163,000

Percentage of Two Sigma Advisors’ 13F Portfolio: 2.44%

Number of Hedge Fund Holders: 250

Wells Fargo analyst Michael Turrin on November 22 initiated coverage of Microsoft Corporation (NASDAQ:MSFT), a Big Five US tech corporation, with an Overweight rating and a $400 price target. The analyst is positive that despite being one of the largest global tech companies, Microsoft Corporation (NASDAQ:MSFT) has a bright future ahead, with massive potential for growth. 

Microsoft Corporation (NASDAQ:MSFT) is the largest holding in the Q3 portfolio of Two Sigma Advisors, with the firm owning 3.34 million Microsoft Corporation (NASDAQ:MSFT) shares, worth $943.1 million, representing 2.44% of the firm’s total investments. 

Fisher Asset Management is the largest Microsoft Corporation (NASDAQ:MSFT) stakeholder as of September end, with 25.5 million shares worth over $7 billion. Overall, a total of 250 out of the 867 elite funds monitored by Insider Monkey were bullish on Microsoft Corporation (NASDAQ:MSFT) at the end of Q3, with stakes amounting to $65.8 billion. 

Microsoft Corporation (NASDAQ:MSFT) posted its Q3 earnings on October 26. EPS in the period came in at $2.27, topping estimates by $0.19. Revenue for the third quarter totaled $45.32 billion, up almost 22% from the preceding-year quarter, outperforming estimates by $1.33 billion. 

Here is what Alger has to say about Microsoft Corporation (NASDAQ:MSFT) in its Q3 2021 investor letter:

“Microsoft Corporation was among the top contributors to performance during the third quarter. Microsoft is a Positive Dynamic Change beneficiary of corporate America’s transformative digitization. Microsoft’s enterprise cloud product, Azure, is rapidly growing and accruing market share. Microsoft reported that Azure grew 51% in the second quarter. This high unit volume growth is a primary driver of the company’s higher share price, but the company’s 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.”

You can also take a look at Martin Taylor’s Crake Asset Management Portfolio: Top 10 Stock Picks and 10 Safest Stocks To Buy Now. 

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