David Tepper Portfolio Holdings: 5 Long-Term Stocks

2. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 269

Appaloosa’s Holding Period: 3 Years

David Tepper has held a position in Microsoft Corporation (NASDAQ:MSFT) for the last three years. Securities filings for the third quarter of 2022 reveal that David Tepper’s Appaloosa Management held 235,000 shares worth $54.7 million, representing 4.02% of the total securities. 

Macquarie analyst Sarah Hindlian-Bowler on November 2 initiated coverage of Microsoft Corporation (NASDAQ:MSFT) with a Neutral rating and a $234 price target. The analyst sees short-term headwinds for Microsoft Corporation (NASDAQ:MSFT) from a deterioration in the macro environment, cloud pull-in from COVID, soft PC sales, soaring energy costs, and a weak consumer.

According to Insider Monkey’s Q3 data, 269 hedge funds were bullish on Microsoft Corporation (NASDAQ:MSFT), up from 258 funds in the prior quarter. Bill & Melinda Gates Foundation Trust is the largest stakeholder of the company, with 39.2 million shares worth $9.14 billion. 

Diamond Hill made the following comment about Microsoft Corporation (NASDAQ:MSFT) in its Q3 2022 investor letter:

“Also among our bottom contributors were media and technology giant Alphabet, software and IT services provider Microsoft Corporation (NASDAQ:MSFT) and insurance company American International Group (AIG). Microsoft shares declined in Q3, along with other tech companies, as rising interest rates impacted the near-term outlook. We expect the business to continue to generate strong revenue growth and benefit from operating leverage. Microsoft’s cloud computing services business, Azure, is generating robust growth, confirming its competitive positioning.”