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Year-to-date Microsoft (MSFT) stock gained around 16.5%. MSFT is trading now at around $184.88 (-1.24%). The market cap is $1.40 trillion.
Brokers and investment analysts Diamond Hill Capital recently released its Q1 investor advisory seen on July 4. The report shows that the small-cap fund went down by 36.17%. Its Russell 2000 index also went down by 30.61%. The investment advisory listed a number of stocks that show promise even in the down market. Among the top-recommended investments by the firm is Microsoft Corporation (NASDAQ: MSFT). MSFT stock which was valued at $185.36 as of June 3 is a top pick by the investment analyst company which stated that the performance of the company is linked to its high productivity.
It added that its software has continued to be popular as more establishments resort to remote work in the wake of the coronavirus pandemic. Diamond Hill Capital stated:
“Additionally, the long-term growth opportunity of Azure, Microsoft’s cloud computing platform should remain attractive in a variety of macroeconomic environments.”
Today the stock is slightly down. MSFT is trading now at $184.88 (-1.24%). The market cap is $1.40 trillion.
Other Fund Managers Have Similar Views on MSFT Stock
Diamond Hill Capital is not alone in the projection that Microsoft shares has great potentials in the near future. Other hedge finds managers alerted investors that based on the number of bullish positions on the stock which increased by 24% from the result of the last quarter, MSFT is a stock to watch out for its profitability potentials.
A Yahoo Finance report stated that based on its performance metrics, Microsoft is ranked number 2 among the top 30 stocks in terms of popularity among hedge funds managers.
Based on antecedence, this rating of profitable stocks has shown consistency, returning 185% to investors since 2014. This is better than the performance of the S&P 500 Index ETFs which returned 109% within the same period. The review proves that hedge funds have been reasonably profitable despite contrary media reports.
The pro hedge funds report stated that 2020 presents unprecedented opportunities for investors. It claimed that hedge fund stocks are better investments than S&P 500 ETFs due to higher opportunities for trades than in the past decade.
Hedge funds aside reducing the risks investors are exposed to could be profitable especially in the long run. Other top prospects according to a similar report by Motley Fool are Sonos Inc (NASDAQ: SONO), AeroVironment Inc (NASDAQ: AVAV) and Innovative Industrial Properties Inc (NYSE: IIPR). The report noted that volatility is usually associated with shares of small companies but the high risk could be taken advantage of resulting in high pay offs.