Aoris International Fund's Comments on Microsoft (MSFT)

Aoris Investment Management, a specialist international equity manager, released its "Aoris International Fund" Q2 2025 investor letter. A copy of the letter can be downloaded here. International equity markets, represented by the MSCI AC World Accumulation Index ex Australia, rose by 6.0% in AUD for the June quarter. In local currencies, gains were 9.3%, but currency fluctuations reduced the AUD return by 3.3%. In the June quarter, Portfolio’s Class A (Unhedged) returned 8.2% after fees compared to a 6.0% return for the benchmark. The fund’s Class C (Hedged) returned 10.1% compared to a 9.3% return for the benchmark. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its second-quarter 2025 investor letter, Aoris International Fund highlighted stocks such as Microsoft Corporation (NASDAQ:MSFT). Microsoft Corporation (NASDAQ:MSFT) is a multinational software company that develops and supports software, services, devices, and solutions. The one-month return of Microsoft Corporation (NASDAQ:MSFT) was -5.02%, and its shares gained 22.66% of their value over the last 52 weeks. On August 27, 2025, Microsoft Corporation (NASDAQ:MSFT) stock closed at $506.74 per share, with a market capitalization of $3.767 trillion.

Aoris International Fund stated the following regarding Microsoft Corporation (NASDAQ:MSFT) in its second quarter 2025 investor letter:

"There had been concerns from some investors for much of the last year that Microsoft Corporation (NASDAQ:MSFT) had overcommitted to its data centre infrastructure build out, and reports of lease cancellations were seen as a sign of underwhelming demand for AI computing. Pleasingly, Microsoft’s March quarter revenue rose by 15%, including 35% growth in its Azure cloud computing business. Its AI computing revenue rose rapidly, and demand for these services continues to exceed Microsoft’s ability to add new capacity.

Microsoft is the world’s largest software business by sales, and this year it celebrated its 50th anniversary.

Today, it’s difficult to talk about Microsoft without focusing on the exciting markets of cloud computing and AI. However, it’s notable how successful Microsoft has been across a wide range of activities. A few examples of this broad-based growth and success are: • The number of subscribers to the Once suite, including the Word, Excel and PowerPoint that many of us use every day, increased from 250 million to 400 million in the four years to April last year, according to website UserHub. This is a remarkable rate of growth for products that could easily have been seen as mature half a decade ago..." (Click here to read the full text)

Microsoft Corporation (NASDAQ:MSFT) is in second position our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 294 hedge fund portfolios held Microsoft Corporation (NASDAQ:MSFT) at the end of the second quarter compared to 284 in the previous quarter. In the fourth quarter of fiscal year 2025, Microsoft Corporation (NASDAQ: MSFT) reported revenue of $76.4 billion, representing an 18% increase, or 17% when adjusted for constant currency.  While we acknowledge the potential of Microsoft Corporation (NASDAQ:MSFT) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Microsoft Corporation (NASDAQ:MSFT) and shared the list of most profitable tech stocks to invest in. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.