We recently published a list of Israel Englander’s Stock Portfolio: Top 10 Stocks to Invest in. In this article, we are going to take a look at where Microsoft Corporation (NASDAQ:MSFT) stands against other stocks to invest in from Israel Englander’s portfolio.
Millennium Management is a globally recognized investment firm specializing in multi-strategy hedge fund offerings. Founded in 1989, the firm has established itself as one of the largest alternative asset management firms. With headquarters in New York, Millennium Management has expanded its operations across North America, Europe, and Asia, with 18 primary offices in financial hubs such as London, Dubai, Singapore, and Tokyo. The firm employs a platform-based investment approach, consisting of approximately 330 investment teams operating under a decentralized model. These teams deploy diverse strategies across various asset classes, including equities, fixed income, commodities, and derivatives. Millennium’s core strategies encompass fundamental equity research, equity arbitrage, macroeconomic-driven fixed-income investments, and commodity-based trades. By leveraging a data-driven and diversified approach, the firm seeks to generate consistent, high-quality returns for its investors while effectively managing risk across global markets.
Millennium was co-founded by Israel A. Englander and Ronald Shear, both of whom had extensive experience in the American Stock Exchange (AMEX). The firm initially launched with $35 million in capital, with Englander contributing $5 million and securing additional investment from Canadian financiers, the Belzberg brothers. However, the firm faced early struggles, leading to Shear’s departure just six months after its inception. Despite these challenges, Millennium Management evolved into a powerhouse in the hedge fund industry, consistently ranking among the top-performing firms. Over the years, Millennium has adopted an institutionalized structure, attracting seasoned executives such as Bobby Jain, who served as co-CIO alongside Englander until his departure in 2023. By implementing a disciplined risk management framework and continuously refining its investment strategies, Millennium has remained at the forefront of alternative asset management.
Israel Englander, the driving force behind Millennium, has built a reputation as one of the most successful hedge fund managers in modern finance. A graduate of New York University, Englander pursued an MBA before leaving early to trade at AMEX, where he gained valuable experience in market-making and derivatives trading. His expertise and strategic vision enabled Millennium to grow rapidly, managing approximately $13 billion in assets by 2011. In recent years, Englander has explored opportunities to sell a minority stake in the firm, signaling a shift towards institutional ownership. His approach to hedge fund management prioritizes capital allocation to specialized teams rather than making direct investment decisions himself. This model has allowed Millennium to maintain a highly competitive edge, attracting top talent and fostering a dynamic investment environment.
Millennium’s outstanding performance has positioned it as one of the most successful hedge funds globally. As of Q4 2024, the firm reported $204.64 billion in managed 13F securities, with its top ten holdings comprising 15.5% of its portfolio. Notably, Millennium has consistently ranked among the highest-grossing hedge funds, posting the fourth-largest net gains of any fund since its inception. Its commitment to risk-adjusted returns, diversification, and strategic innovation has earned it a strong reputation among institutional investors. With a proven track record, an expansive global presence, and a disciplined investment approach, Millennium Management continues to be a dominant force in the hedge fund industry.
Our Methodology
The stocks discussed below were picked from Millennium Management’s Q4 2024 13F filings. They are compiled in the ascending order of the hedge fund’s stake in them as of December 31, 2024. To assist readers with more context, we have included the hedge fund sentiment regarding each stock using data from 1,008 hedge funds tracked by Insider Monkey in the fourth quarter of 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A development team working together to create the next version of Windows.
Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders as of Q4: 317
Millennium Management’s Equity Stake: $1.09 Billion
In February 2025, Microsoft Corporation (NASDAQ:MSFT) announced a major breakthrough in quantum computing with the development of a topological qubit, a milestone that could significantly impact artificial intelligence, medicine, and cryptography. While some experts remain skeptical, this innovation intensifies global competition in quantum research. Meanwhile, Microsoft Corporation (NASDAQ:MSFT) CEO Satya Nadella has emphasized the transformative role of AI in reshaping knowledge work. In a recent interview, he likened AI’s impact to past technological advancements, such as the introduction of spreadsheets and email, which revolutionized workplace processes. Nadella predicts that AI agents will take over repetitive tasks like email triage, allowing humans to focus on higher-level cognitive work. However, he envisions a future where AI still requires oversight, with knowledge workers evolving into supervisors managing intelligent agents rather than performing routine tasks themselves.
Microsoft Corporation (NASDAQ:MSFT)’s push into AI-driven automation and quantum computing positions it at the forefront of technological innovation, potentially giving it a competitive edge over rivals in enterprise solutions and cloud computing. As AI continues to integrate into workplace processes, reducing inefficiencies and creating new productivity models, the stock could see long-term growth driven by increased demand for its AI-powered tools and infrastructure.
The company’s financial performance supported this outlook, as it reported $69.63 billion in revenue for Q4 2024, surpassing market expectations of $68.81 billion and marking a 12.27% year-over-year increase. Additionally, earnings per share reached $3.23, exceeding analyst projections by 3.5%.
As of Q4 2024, Millennium Management held over 2.5 million shares of Microsoft Corporation (NASDAQ:MSFT), valued at just over $1.09 billion. Institutional investment in the company continued to grow, with 317 hedge funds tracked by Insider Monkey holding nearly $21 billion in shares collectively, as of Q4 2024, up from 279 funds in the previous quarter. This increasing interest highlights strong investor confidence in Microsoft’s long-term growth and dominance in the technology sector.
Mairs & Power Growth Fund stated the following regarding Microsoft Corporation (NASDAQ:MSFT) in its Q4 2024 investor letter:
“Unlike the dot-com companies that operated at the turn-of-the-century, many of today’s technology companies are established businesses with significant cash flows. We have argued, and continue to argue, that many of these investments are perfectly aligned with our investments process in that they embody durable competitive advantages, above-average growth prospects, and excellent management teams.
A perfect example is Microsoft Corporation (NASDAQ:MSFT), which has grown to become the largest holding in the Growth Fund. Microsoft has a near monopoly on the office software productivity market with its Microsoft Office Suite. The company’s Azure platform is a leader in cloud computing and has been steadily gaining share. Thanks to its Office and Azure products, the company is deeply embedded within many enterprise IT ecosystems. Therefore, it should be well-positioned to expand its presence within its customer base, as it rolls out premium-price AI solutions. The company is not resting on its laurels and plans on spending an astounding $80 billion in 2025 to build out AI data centers.”
Overall, MSFT ranks 4th on our list of stocks to invest in from Israel Englander’s portfolio. While we acknowledge the potential for MSFT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MSFT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.