Were Hedge Funds Right About Microsoft Corporation (NASDAQ:MSFT)?

Before we spend many hours researching a company, we’d like to analyze what insiders, hedge funds and billionaire investors think of the stock first. We would like to do so because the elite investors’ consensus returns have been exceptional. In the following paragraphs, we find out what the billionaire investors and hedge funds think of Microsoft Corporation (NASDAQ:MSFT) and whether they are right.

Is Microsoft Corporation (NASDAQ:MSFT) a great investment right now? Hedge funds are in an optimistic mood. The number of long hedge fund positions moved up by 9 recently. Microsoft was actually the second most popular stock among hedge funds at the end of the second quarter (see the list of 25 most popular stocks among hedge funds).

In today’s marketplace there are tons of formulas shareholders can use to analyze publicly traded companies. Some of the most innovative formulas are hedge fund and insider trading interest. Our researchers have shown that, historically, those who follow the best picks of the elite money managers can outpace their index-focused peers by a very impressive margin. Insider Monkey’s flagship best performing hedge funds strategy returned 24.8% over the last 12 months and outperformed the market by more than 17 percentage points. This strategy also outperformed the market by 3 percentage points in the fourth quarter of this year despite the market volatility (see the details here). That’s why we believe hedge fund sentiment is a useful indicator that investors should pay attention to.

We’re going to take a look at the key hedge fund action surrounding Microsoft Corporation (NASDAQ:MSFT).

Hedge fund activity in Microsoft Corporation (NASDAQ:MSFT)

ValuaAct Capital invested $2 billion when Microsoft was trading at lower $30s and completely sold out of its position earlier this year. This didn’t seem to discourage other hedge funds. Overall, hedge funds are in an optimistic mood. The

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