We recently published a list 10 best shares to buy in the coming 3 months. In this article we will look at where Microsoft Corporation (Nasdaq: MSFT) is against other best shares to buy in the coming 3 months.
The year 2025 started with the surprise announcement of Deepseek Ai, launched in China, which shook the markets. Further volatility was experienced when the US government implemented trading rates in China and Europe. In March, President Trump suggested that his proposed mutual tariff regime would offer ‘flexibility’, giving investors some lighting. Although it is unclear what the term “flexibility” would entail. Rising tensions of conflicts in the Middle East and Europe contributed to market uncertainty. Looking ahead, investors will keep a close eye on new economic indicators to assess the position of the FED on future interest rates.
The hedge fund industry is seen as a trusted source of investment options. According to a report published by Reuters, the assets have grown by almost 56% since 2015. The industry had $ 4.51 trillion in asseted power (AUM) in 2024, 9.75% higher compared to the previous year. The total assets were the highest amount since 2021, with $ 401.4 billion in 2024 due to strong performance in different strategies.
With regard to the return, hedge funds continued to show an annual basis of improvement. According to a report per crucial path, hedge funds in 2023 returned by 5.7% in 2023 and 10.7%, while some managers showed profits above 50%. This performance substantiates the influence of industry on markets.
Looking ahead, the landscape of the hedge fund is ready for important changes in 2025, powered by evolving market conditions, technological progress and changing investors preferences. Mordor Intelligence predicts that the American hedge fund market will have a market size of $ 2.95 trillion in 2025 and it is expected that $ 4.05 trillion will reach by 2030, a CAGR of 6.52%.
Hedge funds have introduced new strategies for reducing market risks for improved efficiency to their investors. These include diversification into smaller multi-strategic funds. After a decade of fluctuating demand, smaller multi-strategic funds started to show interest. In 2024, with traditional asset classes that are confronted with challenges of rising P/E ratios and strict credit spreads, the non-correlated returns of reinsurance-related strategies have become increasingly attractive. This is expected to cause considerable capital inflow in the sector in 2025, in particular from institutional investors looking for diversification and higher returns. Investors who can assess market dynamics can adapt to changes and identifying future leaders in space are well positioned for success. Hedge funds have the means to use advanced AI-driven technologies to predict market movements to guarantee a higher efficiency on volatile asset classes.
Investors who want to limit the impact of such volatility will opt for more stable, low risk investments such as securities with fixed interest. These offer a continuous stream of income in periods of high interest rates. On the other hand, those who are willing to take advantage of high interest rates would opt for sectors that benefit from such a scenario, including banking, real estate or technology companies that are aimed at high market volatility.
The best shares to buy in the next three months are chosen based on hedge funds sentiment to these investments. For this list we used the own database of the Q4 2024 of Insider Monkey and identified the 10 most popular hedge fund shares. The shares are arranged in increasing order of their hedge fund positions.
At Insider Monkey we are obsessed with hedge funds. Why are we interested in the shares that stack hedge funds? The reason is simple: our research has shown that we can surpass the market by imitating the best share choices of the best hedge funds. The strategy of our quarterly newsletter selects 14 CAP and Large-CAP shares every quarter and has returned 373.4% since May 2014 and has reported its benchmark with 218 percentage points (See more details here).
Is Microsoft Corporation (MSFT) the best shares to buy in the coming 3 months?
A development team that works together to make the next version of Windows.
Number of holders of hedge funds: 317
Upward potential: 29.39%
Microsoft Corporation (Nasdaq: MSFT) is a pioneer in the technology sector. A global giant offers a wide range of software, services and devices, with activities divided into three main segments: productivity and business processes, intelligent cloud and more personal computing. The productivity and business processes segment focuses on workplace and communication tools, including Microsoft 365, teams, LinkedIn and Dynamics 365. The intelligent cloud segment offers cloud-based services and server products, especially Azure, Visual Studio and Platforms such as Github. The more personal computing segment includes Windows operating systems, surface devices and gaming hardware brands such as Xbox, Game Pass and the management of search and news advertisements via Bing, Microsoft News and Edge.
The Microsoft Corporation (Nasdaq: MSFT: MSFT) Winst report for the first quarter of 2025 revealed the turnover of $ 69.63 billion, an increase of 12.27%, as a result of which the estimates of analysts with $ 823.09 million and an EPS of $ 3.23 were erased. The AI segment contributed $ 13 billion to sales, while the turnover of Cloud Services was $ 40.9 billion, an increase of 21%. The company’s chairman and chief executive officer, Satya Nadella, commented on the performance of the company and stated:
“Companies are starting to switch from proof-of-concepts to company-wide implementations to unlock the entire ROI of AI. And our AI activities now have an annual $ 13 billion higher than 175% on an annual basis.”
Last year Mr. Satya Nadella made a trip to Malaysia, while American technology companies continue to reduce their dependence on China as a regional partner due to a shift in US government policy. Mr Nadella announced that Microsoft Corporation (Nasdaq: MSFT) is planning to launch his first cloud region in Malaysia with three data centers against mid -2025. More recently, the company has also announced to scale back the activities of Skype and switch existing users to Microsoft Teams. With an upward potential of almost 30%, MSFT is one of the best shares to buy.
Generally, MSFT is in 2nd place On our list of best shares to buy the next 3 months. Although we recognize the potential for MSFT as an investment, our conviction is convinced that some AI shares have a greater promise to deliver a higher efficiency and to do this within a shorter time frame. If you are looking for an AI share that is promising than MSFT, but that acts with less than 5 times the income, view our report on the Cheapest AI stock.
Read next: 20 best AI shares to buy now And 30 best shares to buy now according to billionaires.
Publication: none. This article was originally published on Insider Monkey.
