Hedge Fund TCI Cuts Microsoft Stake Over AI Competition Concerns

Deep News05-08 23:41

According to a report citing a letter to investors, the hedge fund TCI, managed by Christopher Hohn, significantly reduced its position in Microsoft from 10% of its portfolio at the end of last year to just 1% by the end of March.

In the letter, Hohn stated, "We reduced our investment in Microsoft due to the uncertainties that rapid advancements in artificial intelligence pose for the company's future competitive position."

Hohn expressed primary concerns regarding the outlook for Microsoft's Office software business and also noted some perceived risks associated with its Azure cloud platform.

The report indicated that TCI's stake in Microsoft had been valued at approximately $8 billion.

Conversely, TCI increased its holding in Alphabet from 3% to 5% of its portfolio during the same quarter.

TCI declined to comment on the matter.

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