Hedge Fund ValueAct eyes Microsoft Corporation (NASDAQ:MSFT) to reap gains from falling market

Denver, CO, 07/24/2013 (Avauncer.com) –  Shares of Microsoft Corporation (NASDAQ:MSFT) fell 0.59% to close at $31.82 in its previous trading session. This was midway its 52-week price band of $26.26 to $36.43.

Reports have confirmed that Hedge fund ValueAct has again indulged in buying shares of Microsoft. The firm has earlier in April resorted to a $1.9 billion stake. It is speculated that the firm is eyeing on purchase of as much stake it can in the recent times, especially when the company itself has resorted to numerous sell offs, in an attempt to turn its fortunes.

The company, after holding substantial number of shares, would then eye to take the reins of the management of the company, in an attempt to steer away from the recent spate of failures the company has been facing one after another.  This would likely reshape the company’s future, hopefully for the better of it.

Shares of Microsoft plummeted as much as 11% following its disappointing quarter earnings. The fall was much severe than what actually troubles the company, i.e. declining PC industry. This showed that investors finally started to lose hope in what was once the most coveted name in PC industry. Also, the company’s attempt to woo the markets through its tablet, Windows RT, also proved to be a complete failure.

However, ValueAct seems to remain unperturbed by the declining PC industry, and the fiascos that is hitting the company one after one. The firm is rather eyeing on the cloud computing capabilities of the company, commenting that in three to five years, PC industry will become irrelevant, while cloud computing will largely be the talk of the town. It believes that Microsoft is better poised than its competitors to perform in this segment. Microsoft’s Azure, allows other software makers to run their cloud applications on Microsoft’s server, which is expected to lead greater customer acceptance.