by Christopher Freeburn | April 22, 2013 11:38 am
Shares of Microsoft (NASDAQ:MSFT) climbed more than 3% in Monday morning trading after CNBC aired a report that an activist investor group had taken a significant stake in the company.
According to the report, ValueAct Capital has acquired $2 billion of the software giant’s shares. The stake accounts for less than 1% of Microsoft’s outstanding shares, but places ValueAct amongst the largest 15 investors in the company, Reuters noted.
ValueAct invests in undervalued companies and pressuring their management teams to boost their share prices.
Microsoft shares have risen 16% this year, but some investors point out that its current share price is not far from its price more than a decade ago.
Last year, Microsoft unveiled the latest version of its popular Windows operating system — Windows 8 – aimed at both desktop computers and mobile devices.
It has also recently ventured into the tablet market with its line of Surface tablets, which run Windows 8. However, early sales have proven disappointing.
Still, Microsoft recently announced that a new wave of smaller-screen tablets running Windows 8 from its manufacturing partners will hit stores this year. The smaller tablets are likely aimed at competing with Apple‘s (NASDAQ:AAPL) successful iPad Mini.
Source URL: http://investorplace.com/2013/04/hedge-fund-takes-huge-stake-in-microsoft/
Short URL: http://invstplc.com/1nujLLY
Copyright ©2014 InvestorPlace Media, LLC. All rights reserved. 700 Indian Springs Drive, Lancaster, PA 17601.