Nomura Value Fund, a series of Delaware Group Equity Funds II on Microsoft Corporation
Thesis
The fund initiated Microsoft with the shares near the low end of their five- and ten-year valuation ranges. It believes the market is overly discounting Microsoft’s long-term prospects despite its leading positions in software and cloud infrastructure. The team also sees Microsoft as a potential winner from AI adoption. The pitch combines an unusually attractive valuation relative to the company’s own history with durable competitive positions and AI upside.
“we believed the market was overly discounting Microsoft’s long-term prospects”