As disclosed in its most recent regulatory filing, Lakehouse Capital Pty Ltd has significantly reduced its stake in Microsoft Corporation (MSFT, Financial). The firm trimmed its holdings by 34.5%, bringing the total down to 9,472 shares from over 14,000 previously. The current value of these shares stands at approximately $4.08 million. This move reduces Microsoft's weight in the fund's portfolio to 2.9%, making it the 13th largest holding.
The reduction aligns with trends adopted by most institutional investors. For example, Christopher J. Hasenberg Inc. bought 169.2% more Microsoft this year, and Bellevue Group AG bought 47.5%. At the moment, the combined stake of institutional investors and hedge funds is 71.13 % of Microsoft's total stake.
Microsoft still holds a key position in the technological sector, and its stock has increased much more in percentage than others in the past year. Currently, the stock is listed as a 'Moderate Buy' due to a projected earnings growth of 14.3% in the next fiscal year. However, its relatively high P/E and P/B ratios sometimes tell a lot about the value investor strategies for exercising more caution.
Microsoft's core has deep institutional support and impressive growth prospects. However, Lakehouse Capital's dilution remains a foundation holding for many Investors.
