Here’s Why Third Point Management Sized Up its Investment in Microsoft Corporation (MSFT)

Third Point Management, a New York-based investment advisor, released its second-quarter 2023 investor letter. A copy of the same can be downloaded here. The Third Point Offshore Fund returned 1.1% net in the second quarter compared to an 8.7% return for the S&P 500 INDEX (TR) and a 7.0% return for the MSCI WORLD INDEX (TR). Year-to-date, the fund returned -3.0% compared to 16.9% and 15.4% returns for the indexes. In addition, please check the fund’s top five holdings to know its best picks in 2023.

Third Point Management highlighted stocks like Microsoft Corporation (NASDAQ:MSFT) in the second quarter 2023 investor letter. Headquartered in Redmond, Washington, Microsoft Corporation (NASDAQ:MSFT) is a multinational software company that develops, and licenses software, services, devices, and solutions. On August 8, 2023, Microsoft Corporation (NASDAQ:MSFT) stock closed at $326.05 per share. One-month return of Microsoft Corporation (NASDAQ:MSFT) was -3.31%, and its shares gained 12.76% of their value over the last 52 weeks. Microsoft Corporation (NASDAQ:MSFT) has a market capitalization of $2.424 trillion.

Third Point Management made the following comment about Microsoft Corporation (NASDAQ:MSFT) in its second quarter 2023 investor letter:

“While our gross equity exposure is still modest (below 100% on the long side), we have increased our nets to 70% as of this writing and 77% on a beta adjusted basis. About 45% of that net long exposure is composed of direct and indirect AI beneficiaries trading at reasonable valuations. We have sized up our investments in certain cloud software businesses including Microsoft Corporation (NASDAQ:MSFT), a clear AI winner as a result of its rapidly growing Azure cloud business, upside from applying AI features to its core Office products, investment in Open AI, and ability to provide AI services to other companies (for example, Microsoft holds a stake in one of our portfolio companies, LSE, which it is also assisting in harnessing greater value in its data via AI).”

Copyright: ymgerman / 123RF Stock Photo

Microsoft Corporation (NASDAQ:MSFT) holds the first position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 289 hedge fund portfolios held Microsoft Corporation (NASDAQ:MSFT) at the end of first quarter which was 259 in the previous quarter.

We discussed Microsoft Corporation (NASDAQ:MSFT) in another article and shared Weitz Partners III Opportunity Fund’s views on the company. In addition, please check out our hedge fund investor letters Q2 2023 page for more investor letters from hedge funds and other leading investors.


Suggested Articles:

Disclosure: None. This article is originally published at Insider Monkey.

Source link

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Most Popular

To Top



Get our latest downloads and information first.
Complete the form below to subscribe to our weekly newsletter.


    Input this code: captcha