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.