Here’s Why ClearBridge Value Equity Strategy Added Microsoft Corporation (MSFT) in Q2

ClearBridge Investments, an investment management company, released its “ClearBridge Value Equity Strategy” second quarter 2023 investor letter. A copy of the same can be downloaded here. The strategy outperformed the Russell 1000 Value Index in the second quarter. The strategy has gained nine out of eleven sectors in which it was invested during the quarter, on an absolute basis. Overall stock selection contributed to the performance on a relative basis while sector allocation effects detracted. In addition, please check the fund’s top five holdings to know its best picks in 2023.

ClearBridge Value Equity Strategy highlighted stocks like Microsoft Corporation (NASDAQ:MSFT) in the second 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 September 28, 2023, Microsoft Corporation (NASDAQ:MSFT) stock closed at $313.64 per share. One-month return of Microsoft Corporation (NASDAQ:MSFT) was -4.57%, and its shares gained 34.67% of their value over the last 52 weeks. Microsoft Corporation (NASDAQ:MSFT) has a market capitalization of $2.33 trillion.

ClearBridge Value Equity Strategy made the following comment about Microsoft Corporation (NASDAQ:MSFT) in its Q2 2023 investor letter:

“We initiated a small position in Microsoft Corporation (NASDAQ:MSFT) during the quarter, which may seem surprising given our concerns about index concentration. However, we seized the opportunity on a compelling entry point below our business value estimate, due to an anticipated acceleration of demand for Microsoft’s Azure cloud business and incremental revenues from integration of Microsoft’s AI Copilot program into its office platform. We believe this could support double-digit growth, while simultaneously solidifying Microsoft’s competitive position as an AI winner. Even as a small position, we believe Microsoft provides a large portfolio construction benefit given low correlation to the rest of the portfolio.”

manaemedia / Shutterstock.com

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 best big data stocks to buy. In addition, please check out our hedge fund investor letters Q2 2023 page for more investor letters from hedge funds and other leading investors.

Suggested Articles:

• 10 Weirdest, Unusual ETFs You Can Buy
• 13 Best Auto Components and Parts Stocks to Buy Now
• Dividend Aristocrats Ranked By Yield: Top 25

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