Nomura Value Fund on Microsoft Corporation
Thesis
The fund initiated Microsoft with the shares near the low end of their five- and ten-year valuation ranges. The team believes the market was discounting Microsoft's long-term prospects too heavily despite its leadership in software and cloud infrastructure. Its potential to be a major AI beneficiary adds an additional growth driver to an already strong franchise.
“With the shares trading at the low end of their 5- and 10-year valuation ranges, we believed the market was overly discounting Microsoft’s long-term prospects given its leading positions in software and cloud infrastructure and its potential to be an AI winner.”