Jeremy Grantham’s 5 Favorite Stocks

1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 258

Jeremy Grantham’s Stake Value: $819.49 Million

Jeremy Grantham’s largest holding as of Q2 2022 is Microsoft Corporation (NASDAQ:MSFT). He lifted his stake by 6% between March and June, disclosing 3.19 million shares of the company in his portfolio worth $819.49 million, representing 4.4% of the total investments. Microsoft Corporation (NASDAQ:MSFT) has been part of the GMO portfolio since Q1 2013, and it is one of the favorite stock picks of Jeremy Grantham. 

On August 11, Guggenheim analyst John DiFucci initiated coverage of Microsoft Corporation (NASDAQ:MSFT) with a Neutral rating and a $292 price target. While he believes Microsoft Corporation (NASDAQ:MSFT) can increase revenue and free cash flow, supported by upside in Azure and Office Commercial 365, he sees ongoing decline in Windows. 

According to Insider Monkey’s Q2 data, 258 hedge funds were long Microsoft Corporation (NASDAQ:MSFT), compared to 259 funds in the earlier quarter. Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital is a significant position holder in the company, with approximately 18 million shares worth $4.6 billion. 

Here is what Alger Capital specifically said about Microsoft Corporation (NASDAQ:MSFT) in its Q2 2022 investor letter:

“Microsoft Corporation (NASDAQ:MSFT) is a positive dynamic change beneficiary of corporate America’s transformative digitization. During a previous earnings call, Microsoft’s CEO estimated that technology spending as a percent of GDP may increase from about 5% today to 10% in 10 years. Microsoft’s enterprise cloud product, Azure, is rapidly growing and accruing market share and its revenues increased 49% during the first three months of this year as the company’s revenue growth approached 20%. Microsoft’s share price declined despite its high unit volume growth as the broad equity market was down due to higher interest rates and slowing economic growth.”

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