Diamond Hill Capital recently released its Q1 2020 Investor Letter, a copy of which you can download below. The Diamond Hill Small Cap Fund posted a return of -36.17% for the quarter, underperforming its benchmark, the Russell 2000 Index which returned -30.61% in the same quarter. You should check out Diamond Hill Capital's top 5 stock picks for investors to buy right now, which could be the biggest winners of the stock market crash. There weren’t a lot of funds who could deliver these kinds of returns without shorting the market or using aggressive put options.
In the said letter, Diamond Hill Capital highlighted a few stocks and Microsoft Corp (NASDAQ:MSFT) is one of them. Microsoft is a technology company. Year-to-date, Microsoft Corp (NASDAQ:MSFT) stock gained 16.5% and on June 3rd it had a closing price of $185.36. Here is what Diamond Hill Capital said:
"Software company Microsoft Corp. outperformed as the value of the company’s productivity and collaboration software was prominent with workers across the world shifting to a remote work environment. Additionally, the long-term growth opportunity of Azure, Microsoft’s cloud computing platform, should remain attractive in a variety of macroeconomic environments."
In Q1 2020, the number of bullish hedge fund positions on Microsoft Corp (NASDAQ:MSFT) stock increased by about 24% from the previous quarter (see the chart here), so a number of other hedge fund managers seem to agree with MSFT's growth potential. Our calculations showed that Microsoft Corp (NASDAQ:MSFT) is ranked #2 among the 30 most popular stocks among hedge funds.