Microsoft Corp MSFT emerged as a darling for hedge funds in the second quarter, with 10 out of the 20 hedge funds Benzinga analyzed having MSFT in their top-5 holdings for the quarter.
Microsoft's widespread adoption among major institutional players isn’t surprising, particularly when you consider the tech giant’s performance year-to-date.
Shares skyrocketed by more than nearly 60%, touching highs of $366.78 before paring some of its gains. The surge can be attributed to the company's substantial investments in artificial intelligence (AI) and a significant stake in OpenAI.
Outside of the AI fervor, those 10 hedge funds that owned the stock over the quarter were collectively paid nearly $22 million by the company. But it wasn't from share appreciation, it was from dividends.
Here’s how the top hedge funds stack up based on their MSFT shares and the dividends they earned:
| Rank | Hedge Fund/Investment Fund | Shares Owned | Dividend Payout |
| 1 | Fundsmith | 9,012,591 | $6.12 million |
| 2 | Tiger Global | 5,668,918 | $3.8 million |
| 3 | Eagle Capital | 5,504,265 | $3.74 million |
| 4 | Coatue Management | 5,291,784 | $3.59 million |
| 5 | Lone Pine Capital | 2,502,085 | $1.7 million |
| 6 | Altimeter Capital | 1,533,135 | $1.042 million |
| 7 | Whale Rock Capital | 1,287,489 | $875,492 |
| 8 | Appaloosa Management | 1,240,000 | $843,200 |
| 9 | Night Owl Capital | 118,261 | $80,417 |
| 10 | Center Lake | 85,000 | $57,800 |
Institutional investors control 72.46% of Microsoft’s outstanding shares — that control not only gives them a say in corporate decisions but also makes them primary beneficiaries of dividends.
Warren Buffett’s investment in Apple Inc AAPL is a great example in this regard. In just this year, Apple poured $645,350,303.61 into Berkshire Hathaway's coffers, solely in dividends.
Retail traders — notably the newer generation — seem caught up in the volatility of today's markets, and that frenzied pace often overshadows a foundational investment strategy: buy and hold.
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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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