Fred Alger Management, an investment management company, released its “Alger Spectra Fund” third quarter 2023 investor letter. A copy of the same can be downloaded here. In the third quarter, the fund underperformed the Russell 3000 Growth Index. The energy and consumer staples sectors were the contributors to the fund’s relative performance in the quarter, while communication services and health care detracted. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Alger Spectra Fund highlighted stocks like Microsoft Corporation (NASDAQ:MSFT) in the third quarter 2023 investor letter. Headquartered in Redmond, Washington, Microsoft Corporation (NASDAQ:MSFT) is a multinational software company that develops, and licenses software, services, devices, and solutions. On November 3, 2023, Microsoft Corporation (NASDAQ:MSFT) stock closed at $352.80 per share. One-month return of Microsoft Corporation (NASDAQ:MSFT) was 6.97%, and its shares gained 54.83% of their value over the last 52 weeks. Microsoft Corporation (NASDAQ:MSFT) has a market capitalization of $2.622 trillion.
Alger Spectra Fund made the following comment about Microsoft Corporation (NASDAQ:MSFT) in its Q3 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 t 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). During the period, the company reported fiscal fourth quarter results that were slightly below expectations. This was largely because anticipations were high due to the company’s robust year-to-date share price performance, which was buoyed by enthusiasm surrounding Al. Although quarterly revenues and earnings beat consensus estimates, management pointed out that they would be ramping up capital expenditures to support Al-driven operational growth. Notably, the company witnessed significant growth in its Intelligent Cloud segment as Azure continues to expand its market share. Despite the encouraging results, demand challenges stemming from companies looking to optimize their cloud spending led to a deceleration in cloud growth when compared to the previous quarter. Acknowledging that cloud optimization may curb the company’s growth in the short term: we remain confident about the company’s prospects going forward, particularly in the realm of Al adoption. Further, CEO Satya Nadella has recently indicated that substantial revenue contributions from Al will begin to materialize around the first half of 2024.”
Image by Tawanda Razika from Pixabay
Microsoft Corporation (NASDAQ:MSFT) holds the first position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 300 hedge fund portfolios held Microsoft Corporation (NASDAQ:MSFT) at the end of second quarter which was 289 in the previous quarter.
We discussed Microsoft Corporation (NASDAQ:MSFT) in another article and shared the list of most valuable video game companies in the world. In addition, please check out our hedge fund investor letters Q3 2023 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
