Hexavest’s Faith in Microsoft Corporation (NASDAQ:MSFT) Pays Off


Having accumulated and stored 16.7 billion dollars in assets, Hexavest worked the last 10 years expanding its hedge fund client list. The progress has paid off, since 188 institutions in countries around the world fall under Hexavest as clients. In its overall portfolio, Hexavest considers Microsoft Corporation (NASDAQ:MSFT) its biggest client; only second to Exxon Mobile (NYSE:XOM) as far as portfolio weighting is concerned.

Hexavest’s interest in Microsoft Corporation (NASDAQ:MSFT) can be explained by the company’s philosophy that a company should only subscribe to those corporations that ‘fit the bill’. Hexavest finds relative value in Microsoft (NASDAQ:MSFT).

Hexavest has an eye for excesses carried by big companies. Its top-down philosophy is wis, because it is a convenient way of finding stocks. Couple of years ago, Hexavest saw the potential of Apple (NASDAQ:APPL)’s excesses and even accounted for the tech giant’s 7 for 1 stock split. Now Apple (NASDAQ:APPL) makes up for 2.94 percent of Hexavest’s portfolio.

Many investors usually like to wait out to see if the stock is worth buying. It depends upon numerous elements such as the company’s ability to make revenue, profits, amount of dividends it gives out, and the company’s prospect for future growth. Same was the case with Microsoft Corporation (NASDAQ:MSFT); the stock began to reinvigorate after an epoch of lapse. The investors were reluctant to believe that the stock is actually growing. Microsoft Corporation (NASDAQ:MSFT) grew excessively in its cloud department and made 908 million dollar in its surface revenue. Hexavest was wise enough to add Microsoft Corporation (NASDAQ:MSFT) to its growing portfolio and now the company makes up for 3.25 percent of the company’s portfolio, bigger than Apple.

What makes Hexavest special is that it holds a vision and can see through a company’s ability to make profit, even if the company is obscure currently. Same was the case with Microsoft Corporation (NASDAQ:MSFT). It went through a rough patch and shareholders dumped the stock cheaply. But the company regained and Hexavest’s faith paid off. Hexavest added Microsoft Corporation (NASDAQ:MSFT) to its portfolio when the latter was in turbulent waters; Hexavest kept adding to its holdings.

This can be a lesson for every long term investor, who wants to learn a thing or two about investing in companies that carry potential. We aren’t suggesting all companies are as strong as Microsoft Corporation (NASDAQ:MSFT), however, if a company, especially a veteran is going through a rough patch, that doesn’t mean it won’t bounce back ever. Hexavest proved to all the investors sprawled around on the market that a risk and courage can pay off, if employed at the right time for the right stock. The investors that didn’t get scared by Microsoft Corporation (NASDAQ:MSFT)’s dip, are now being showered with cash, while those who dumped the stock probably regret their decision.

Microsoft (NASDAQ:MSFT) has a long way to go; especially when it comes to regaining its old strength. But we can say for sure that the company is back on track.