Ken Griffin’s Wellington Fund Delivers Mind-Numbing Returns and Its Top 5 Stocks

1. Microsoft Corp (NASDAQ:MSFT)

Citadel Investment Group’s Equity Stake: $1.59 Billion
Number of Hedge Fund Holders: 306

Microsoft Corp (NASDAQ:MSFT) is the top technology stock that has allowed Ken Griffin’s Wellington Fund to deliver mind-numbing returns over the years. The Redmond, Washington-based company offers Office and Microsoft Teams software solutions. Microsoft Corp (NASDAQ:MSFT) also provides cloud computing solutions under Azure while flexing its muscles in the multibillion-dollar gaming sector through the Xbox console.

Microsoft Corp (NASDAQ:MSFT) gained over 50% in market value in 2023, benefiting from its investment in artificial intelligence through OpenAI. While the stock trades at a price-to-earnings multiple of 37, it also rewards investors with a 0.77% yield. Citadel Investment Group increased its stakes in Microsoft Corp (NASDAQ:MSFT) by 48% in Q3 2023 to $1.59 billion.

306 out of the 910 hedge funds part of Insider Monkey’s database had bought Microsoft Corp (NASDAQ:MSFT)’s shares as of the end of Q3 2023. In Q3 2023, Michael Larson’s Bill & Melinda Gates Foundation Trust was the largest investor courtesy of its $12.4 billion investment.

Here is what Vulcan Value Partners said about Microsoft Corporation (NASDAQ:MSFT) in its fourth quarter 2023 investor letter:

“Microsoft Corporation (NASDAQ:MSFT) is the world’s largest software company with a broad range of offerings including Microsoft Office, gaming, Azure cloud computing, LinkedIn, and more. The company experienced a good quarter with solid growth and strong margins. The company is benefiting from its investments in artificial intelligence. Microsoft is deeply entrenched within its customer base, has high switching costs, and is benefiting from growth tailwinds such as cloud computing and artificial intelligence. We think an underappreciated strength of Microsoft’s business model is that not only are its products designed to work together, but it is also more economical for the customer when multiple products are bundled together. This bundling approach positions Microsoft well to gain market share over time.”

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