5 Best Stocks To Invest In According To Brennan Diaz’s Fernbridge Capital Management

2. Microsoft Corporation (NASDAQ:MSFT)

Fernbridge Capital Management’s Stake Value: $93.5 million
Percentage of Fernbridge Capital Management’s 13F Portfolio: 11.41%
Number of Hedge Fund Holders: 238

Coming in at second on our list of the 10 best stocks to invest in according to Brennan Diaz’s Fernbridge Capital Management, is the multinational technology giant Microsoft Corporation (NASDAQ:MSFT).

On October 6, Morgan Stanley analyst Keith Weiss kept an Overweight rating and a $331 price target on the shares of Microsoft Corporation (NASDAQ:MSFT), noting that the company is marking its leadership in the Robotics and Public Cloud segments.

By the end of the June 2021, the hedge fund managed by Brennan Diaz held 345,286 shares in Microsoft Corporation (NASDAQ:MSFT). These shares were valued at $93.5 million and represented 11.41% of his hedge fund’s investment portfolio. Of the 873 hedge funds tracked by Insider Monkey, 238 hedge funds have positions in Microsoft Corporation (NASDAQ:MSFT), valued at over $62.4 billion. The number of hedge funds that held stakes in the company stood at 251 in the previous quarter, worth over $58.9 billion.

Baron Opportunity Fund, in its Q2 2021 Investor Letter, expects solid growth and profitability of  Microsoft Corporation (NASDAQ:MSFT) in the years to come. Here is what the fund said:

“Shares of Microsoft Corporation, a cloud-software leader and provider of software productivity tools and infrastructure, rose during the quarter following a strong earnings report highlighting solid demand for its broad product stack and continued momentum migrating its business to the cloud. Microsoft was a top contributor in the period because it trades at reasonable free cash flow and earnings valuations, has cloud and digital transformation tailwinds at its back, reported a solid March quarter, and beat Street expectations by a wide margin. Microsoft’s results continued to be strong across the board, with Azure cloud computing revenues up 46% in constantcurrency (“cc”) terms and commercial cloud bookings growth of 38% cc, the best in years. Microsoft also reported robust profitability growth, with operating income expanding 31% and GAAP earnings up 45%. We believe the company is well positioned for continued solid growth and profitability through market share gains as more companies look to transform and digitize their businesses as they move operations to the cloud.”