We recently compiled a list of the Tech Billionaire Chase Coleman’s Top 10 Stock Picks. In this article, we are going to take a look at where Microsoft Corporation (NASDAQ:MSFT) stands against the other top stock picks of Tech Billionaire Chase Coleman.
“Tiger cub” Chase Coleman continues to shape the investment landscape with his strategic portfolio decisions. His New York-based investment firm, Tiger Global Management, helped him carve his own path in the financial world and distinguish himself as one of the most successful protegees of Julian Robertson. Previously, Coleman held the position of technology analyst at Tiger Management. Since its foundation in 2001, carrying forward Robertson’s legacy, Tiger Global Management has consistently outperformed market benchmarks.
Focusing mainly on the tech sector, with “headliners” such as Faceabook, Tiger Global led all venture capital firms in raised capital between 2007 and 2017. Additionally, in 2020, the firm generated $10.4 billion in profits for its investors, securing the top spot among hedge funds on LCH Investments’ annual list of world’s greatest hedge fund managers. When the tech sector faced a major downturn in 2022, Tiger Global’s portfolio, which was heavily invested in technology, took a significant hit. The bold strategy of sticking to high-growth technology firms paid off, as the firm’s equity portfolio recovered and showed steady gains in the following years.
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As of the end of the third quarter of 2024, Tiger Global’s holdings continue to reflect Coleman’s emphasis on the tech sector, with 45 holdings where technology stocks dominate 52.37% of the portfolio, along with concentrations in communication services, healthcare, and financial services. Despite a challenging global environment, the fund has maintained steady growth, increasing its value by over 1.08%, reaching over $23.4 billion in value.
Chase Coleman’s commitment to identifying high-quality businesses, especially in the tech sector, is reflected in Tiger Global’s top stock picks. These choices highlight a strategy centered on industry leaders and innovative companies with strong growth potential.
Chase Coleman of Tiger Global
Our Methodology
To compile the list of Chase Coleman’s top 10 stock picks, we have looked at Tiger Global Management’s latest 13F filing and identified the largest positions based on their value.
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 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here).
Microsoft Corporation (NASDAQ:MSFT)
Shares held by Tiger Global: 5.34 million
Value of position: $2.30 billion
Microsoft Corporation (NASDAQ:MSFT) remains a high-quality growth stock, demonstrating solid financial performance and significant market presence. The company holds a strong position in Tiger Global holdings, representing 9.81% of the portfolio, valued at $2.3 billion with 5.34 million shares held. Microsoft enjoys high confidence from major investors, with institutional interest being reflected in 279 hedge fund holders.
The company’s cloud computing business, particularly Azure, has been a key growth driver. Microsoft Corporation (NASDAQ:MSFT) surpassed Wall Street’s targets, with revenue rising by $9 billion (17%), fueled by strong performance in Intelligent Cloud and More Personal Computing segments. Operating income increased by 23%, totaling $5.2 billion, with a 15% rise in the cost of revenue driven by Microsoft Cloud and gaming. A key highlight of Microsoft’s recent performance is the increased integration of AI, particularly through its Copilot assistant. Copilot’s expansion into new regions, including India, has increased its potential for driving both productivity gains and revenue growth.
Microsoft Corporation (NASDAQ:MSFT)’s average revenue estimate for the current quarter is $68.91 billion, while looking forward, for the full year 2025, revenue is expected to reach $278.7 billion, representing a 13.7% year-over-year growth. For the current quarter (December 2024), analysts project an earnings per share (EPS) of $3.14, up from $2.93 a year ago. For the full year 2025, the average EPS estimate is $13.07, an increase from $11.80 in 2024.
Despite the strong growth in its core segments, Microsoft faces challenges as economic conditions in Europe could slow the growth of Azure, and capacity limitations are constraining the expansion of its AI products. Nevertheless, the company’s investments in AI and its expansion into new markets position it as a stable choice for sustained growth.
Overall, MSFT ranks 2nd on our list of Billionaire Chase Coleman’s top stock picks. While we acknowledge the potential of 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.