The Gabelli Dividend Growth Fund, a series of Gabelli Equity Series Funds, Inc. on Microsoft Corporation
Thesis
The fund initiated Microsoft near its 52-week lows after judging sentiment to have become excessively negative. Concerns centered on Microsoft's OpenAI exposure and the broader software sector, but Gabelli viewed the shares as inexpensive relative to the company's own historical valuation. The manager also highlights Microsoft's position as a leading cloud-computing business as support for the investment.
“The Fund started a position in Microsoft Corp. (1.2%) near its 52-week lows shortly before quarter end, taking advantage of overly negative sentiment.”
Key risks
- Exposure to OpenAI
- Broader software-sector concerns