Should You Consider Investing in Microsoft (MSFT)?

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ClearBridge Investments, an investment management firm, published its “Large Cap Growth Strategy” first quarter 2021 investor letter – a copy of which can be downloaded here. The ClearBridge Large Cap Growth Strategy underperformed its Russell 1000 Growth Index benchmark during the first quarter. On an absolute basis, the Strategy had gains across four of the eight sectors in which it was invested (out of 11 sectors total). You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

ClearBridge Investments, in its Q1 2021 investor letter, mentioned Microsoft Corporation (NASDAQ: MSFT), and shared their insights on the company. Microsoft Corporation is a Redmond, Washington-based technology company that currently has a $1.9 trillion market capitalization. Since the beginning of the year, MSFT delivered a 15.61% return, extending its 12-month gains to 38.05%. As of June 09, 2021, the stock closed at $253.59 per share.

Here is what ClearBridge Investments has to say about Microsoft Corporation in its Q1 2021 investor letter:

“We also made adjustments to the portfolio’s top 10 holdings to increase the participation of select stocks. The FAANGs and Microsoft delivered mixed results during the quarter and we continue to be mindful of our weighting to these mega cap growth stocks to ensure they are not limiting our ability to add diversity through new ideas. Our repositioning has been encouraging so far with the portfolio performing better on up days in the market while maintaining good down capture during more turbulent sessions.”

Pixabay/Public Domain

Our calculations show that Microsoft Corporation (NASDAQ: MSFT) ranks 2nd in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the first quarter of 2021, Microsoft Corporation was in 251 hedge fund portfolios, compared to 258 funds in the fourth quarter of 2020. MSFT delivered an 8.57% return in the past 3 months.

The top 10 stocks among hedge funds returned 231.2% between 2015 and 2020, and outperformed the S&P 500 Index ETFs by more than 126 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Here you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

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