American Funds a Microsoft winner

Posted by: Aaron Pressman on October 26, 2007

Despite my less-than-accurate musings and references about Microsoft (Symbol: MSFT) last month, there are a number of big winners in today’s stock action. After a surprisingly great quarter, Microsoft shares are up 9% today to almost $35, the highest since 2001. Which mutual funds were snapping up shares of the software giant at a heady clip recently? Those behemoths over at American Funds.

The Growth Fund of America (AGTHX) bought almost 9 million shares in the second quarter, most of any fund according to Morningstar, when the ‘softies were firmly stuck in their recent range of $27 to $31. American Funds Capital World Fund (CWGIX) was also a buyer, grabbing almost 7 million shares. Some of the other big buyers don’t exactly have an impressive track record. Putnam’s woeful Voyager Fund (PVOYX) and the frequently underperforming Van Kampen Strategic Growth Fund (ACEGX) were big second quarter buyers.

Another way to see the beneficiaries is to look for funds carrying the biggest percentage of assets in Microsoft shares. That list starts with Fidelity’s Select Software and Computer Fund (FSCSX), with 17% of its assets in Microsoft as of May 31. American Heritage Growth Fund (AHEGX) had 11% and the Old Mutual Focused Fund (OBFVX) had 8& invested.

Reader Comments

Don Crews

September 25, 2008 3:22 PM

I am retired from the financial advising business after 35 years. I
used the American Funds most and found
that their management did well for me
and my clients. Yes a reducing sales
charge, but don't always ask what does
it cost, but what does it pay. Check
out cwgix for past performance.

Paula laddusire

September 26, 2008 2:15 AM

I was an extremely successful financial planer until i became permantly disabled 8 yrs ago. I have most of my own $ invested with the American Funds & my clients i recommended 90% of the time they invest with this mutual fund giant also. Reasons being that their past performance in a bear mkt is far above their peers, each fund is required 2 have a min of 6 mngrs, the avg time $ mgrs have been with American Funds is 22yrs! The mgnt fees r much less than their peers & mgs pay is based off a % of ur acct bal! You lose $ they lose $ from their pay ck! Huge incentive 4 the mgrs 2 invest ur $ wisely so it has good steady grwth! Being permantly disabled im so thankful for the American Funds! I live a very finacially lifestyle! A 10+++

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About

Bloomberg Businessweek’s Ben Steverman focuses on the latest moves in financial markets and emerging trends in stocks, bonds, and funds, always with an eye toward giving readers a better understanding of the sometimes confusing and often chaotic world of money. Standard & Poor’s senior index analyst Howard Silverblatt will also provide his take on companies’ finances and the markets. Voted one of the “Top 100 Finance Blogs” in 2007.

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