Light Street Capital Returned 46% in 2023: Top 5 Picks

In this piece, we will take a look at Light Street Capital returned 46% in 2023: top 5 picks. If you wish to read our detailed overview of Kacher’s history, investment philosophy and hedge fund performance, go directly to Light Street Capital Returned 46% in 2023: Top 15 Picks.

5. Microsoft Corporation (NASDAQ:MSFT)

Light Street Capital’s Equity Stake: $20.19 Million
Number of Hedge fund Holders: 306

Redmond, Washington-based Microsoft Corporation (NASDAQ:MSFT) is a software company  specializing in developing software services, devices, and solutions worldwide. Microsoft Corporation (NASDAQ:MSFT) is best known for its Office software suite and Microsoft Viva. Its empire also includes operations around cloud computing via Microsoft Azure and the multibillion-dollar gaming sector through the Xbox console.

Microsoft Corporation (NASDAQ:MSFT) was one of the stocks that stands out as Light Street Capital returned 46% in 2023. The stock was up by 54% as it benefited from its investments in artificial intelligence through OpenAI. The hedge fund increased its stakes in Microsoft Corporation (NASDAQ:MSFT) by 4% in Q3 2023 to $20.19 million.

306 out of the 910 hedge funds in Insider Monkey’s database had bought Microsoft Corporation (NASDAQ:MSFT)’s shares as of the end of Q3 2023. In Q4 2023, Catherine D. Wood’s ARK Investment Management was one of the notable investor of Microsoft Corporation (NASDAQ:MSFT) via its $21.93 million investment.

Polen Capital mentioned Microsoft Corporation (NASDAQ:MSFT) in its fourth quarter 2023 investor letter. Here is what the fund said:

“The largest relative detractors in the quarter were Illumina, Airbnb, and Microsoft Corporation (NASDAQ:MSFT). Microsoft’s business continues to grow well, albeit at slower rates than in the previous few years. That said, it was a relative detractor to the Portfolio because our 7% average weighting for both the quarter and the year were significantly lower than the 12% benchmark weighting in the Russell 1000 Growth. Microsoft shares appreciated a benchmark-beating 19% in 4Q and 58% in 2023)….. (Click here to read full text).”

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