Viking Global’s 5 Long-Term Stock Picks

In this article, we discuss Viking Global’s 5 long-term stock picks. To read the detailed analysis, performance history, and investment philosophy of Andreas Halvorsen’s Viking Global, go directly to Viking Global’s Performance, AUM, and Long-Term Stock Picks.

5. Microsoft Corporation (NASDAQ:MSFT)

Stock Held by Viking Global Since: Q2 2016

Percentage of Viking Global’s portfolio as of Q1 2023: 1.41%

In the first quarter of 2023, Microsoft Corporation (NASDAQ:MSFT) was held by 289 hedge funds, making it the most owned stock by hedge funds according to our database. Bill & Melinda Gates Foundation Trust was the most prominent hedge fund holder of the company with over 39.26 million shares worth $11.32 billion. In the same quarter, Viking Global owned over 1.047 million Microsoft Corporation (NASDAQ:MSFT) shares worth $301.95 million. The hedge fund has held the company stock since the second quarter of 2016.

One of the Big Four accounting firms, KPMG International Limited, is planning to invest at least $2 billion in Microsoft Corporation (NASDAQ:MSFT)’s AI and cloud services businesses over the next five years. The accounting firm sees a potential $12 billion growth in the company’s AI and cloud segment.

In February 2022, Microsoft Corporation (NASDAQ:MSFT) announced the acquisition of Activision Blizzard, Inc. (NASDAQ:ATVI) for $95 per share, and the deal was later blocked by the US Federal Trade Commission (FTC) over monopolization concerns. However, on July 12, the federal judge looking over the case denied FTC’s injunction over the case and said that the agency’s arguments lacked merit. The deal between Microsoft Corporation (NASDAQ:MSFT) and Activision Blizzard, Inc. (NASDAQ:ATVI) has a termination date of July 18, 2023.

ClearBridge Investments made the following comment about Microsoft Corporation (NASDAQ:MSFT) in its second quarter 2023 investor letter:

“2023 has so far marked a return to mega cap leadership, with Apple, Microsoft Corporation (NASDAQ:MSFT), Alphabet, Amazon.com and Nvidia accounting for approximately two thirds of the benchmark return. At 41.3%, the five largest stocks in the market represent the highest concentration in the 26-year history of the Russell 1000 Growth Index. Among these names, we maintain overweights to Nvidia (+246 bps) and Amazon (+117 bps), underweights to Microsoft (-353 bps) and Apple.

The Strategy’s IT holdings also drove performance in the second quarter, led by the continued rerating of graphics chipmaker Nvidia as a key beneficiary of the generative AI boom. AI-connected holdings Microsoft and Amazon also delivered strong gains.”