Jim Cramer’s 5 Best of Breed Stocks

1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 300

Jim Cramer last year labeled Microsoft Corporation (NASDAQ:MSFT) one of the best of breed stocks. Cramer was talking about how major tech companies like Microsoft Corporation (NASDAQ:MSFT) are the first to find bottom during market rotation. He said that he’s studied these stocks for four decades and found out that when these high multiple stocks begin to see sell-off, the fall lasts for just three days from the start.

Insider Monkey’s proprietary database of 910 hedge funds shows that 300 hedge funds had stakes in Microsoft Corporation (NASDAQ:MSFT) as of the end of the second quarter of 2023.

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.”

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