Billionaire Stanley Druckenmiller’s 2023 Portfolio: Top 5 Stock Picks

3. Microsoft Corporation (NASDAQ:MSFT)

Hedge Fund Stake Value: $210.2 million

It seems Druckenmiller was highly impressed by Microsoft Corporation (NASDAQ:MSFT)’s performance earlier this year amid the company’s partnerships with OpenAI, its plans for Bing search engine and more. Billionaire Stanley Druckenmiller opened a new position in Microsoft Corporation (NASDAQ:MSFT) worth $210.2 million in Q1. MSFT shares have gained about 34% year to date.

Insider Monkey’s database of 943 hedge funds shows that Microsoft Corporation (NASDAQ:MSFT) is the most favorite stock pick of elite hedge funds. 259 hedge funds tracked by Insider Monkey had stakes in Microsoft Corporation (NASDAQ:MSFT) as of the end of the fourth quarter of last year.

Alger Spectra Fund made the following comment about Microsoft Corporation (NASDAQ:MSFT) in its Q1 2023 investor letter:

“Microsoft Corporation (NASDAQ:MSFT) is a beneficiary of corporate America’s transformative digitization. Microsoft’s CEO expects technology spending as a percent of Gross Domestic Product (GDP) to jump from about 5% now to 10% in 10 years and that Microsoft will continue to capture market share within the technology sector. The company operates through three segments: Productivity and Business Processes (Office. LinkedIn, and Dynamics), Intelligent Cloud (Server Products and Cloud Services. Azure, and Enterprise Services), and More Personal Computing (Windows Devices, Gaming, and Search). While the company reported decent fiscal second quarter results, their investment in OpenAl’s ChatGPT captured the attention of investors. contributing to positive performance. Throughout the quarter. Microsoft surprised investors with continual rollouts of new Al capabilities across the company’s portfolio (e.g., Bing, GitHub. Teams, Office 365). Furthermore, the company announced Microsoft 365 Copilot, which leverages GPT-4, a large language model, combined with the Microsoft Graph of data to provide Al virtual assistance. We believe Microsoft’s investment in OpenAl provides a first-mover advantage in the Al transformer model space. Despite challenges in the early days of Al-powered applications, the pace of Al innovation is faster than any other enterprise technology previously observed, in our view.”