Artisan Partners, a well-respected investment management company, has recently published its fourth quarter 2024 investor letter for the Artisan Global Opportunities Fund, providing investors with crucial insights into its fund performance and investment strategy. The letter is accessible for download, allowing stakeholders to delve deeper into the fund's analysis and decisions during this period.

In a remarkable display of resilience, US equities enjoyed robust gains throughout the fourth quarter of 2024, contributing to an overall strong performance for the year. However, the Artisan Global Opportunities Fund did exhibit slight weaknesses in its portfolio during this quarter, though it still managed to post a commendable absolute return for the entire year of 2024. Specifically, the fund's Investor Class (ARTRX) reported a return of -1.67%, while the Advisor Class (APDRX) and Institutional Class (APHRX) recorded returns of -1.65% and -1.62%, respectively. For context, these figures stand in contrast to the MSCI All Country World Index, which achieved a return of -0.99% during the same period. Investors are encouraged to review the fund’s top five holdings to gain insight into its best-performing picks for 2024.

Among the notable stocks highlighted in Artisan's investor letter is Microsoft Corporation (NASDAQ:MSFT), a leading multinational software corporation known for its expansive development and support of software, services, and devices. During the month leading up to this report, Microsoft’s shares experienced a decline, with a one-month return of -3.72%. Over the past year, the company’s stock has depreciated by 8.55%, culminating in a closing price of $382.14 per share on April 2, 2025. At this price point, Microsoft boasts a significant market capitalization of approximately $2.841 trillion, solidifying its position as one of the most valuable companies globally.

In the fourth quarter letter, Artisan Global Opportunities Fund provided a detailed explanation regarding its investment decisions surrounding Microsoft Corporation. The fund stated, “We ended our investment campaigns in Ingersoll Rand and Microsoft Corporation during the quarter. Initially, our investment in Microsoft was founded on the belief that the company presented one of the most compelling opportunities to invest in generative AI technology.” Microsoft has been actively integrating AI-driven productivity tools, such as its innovative Copilot feature in the Office suite, which is designed to enhance productivity for knowledge workers and support its premium pricing model.

However, Artisan has opted to exit its position in Microsoft for several reasons. Firstly, the company is making substantial investments to expand its AI data center infrastructure, which has been identified as a potential drain on its free cash flow generation. Furthermore, as Microsoft embarks on this extensive capital expenditure cycle, demonstrating strong returns on these investments will be critical. The rollout of Copilot features across the Office suite is anticipated to be a key driver of returns. Nonetheless, Artisan expressed concerns regarding the potential near-term impact of these features, suggesting that they may not meet investor expectations in the immediate future. This raises questions about the short-term viability of the extensive investments Microsoft is pursuing.

Amidst these discussions, one question arises: Is Microsoft Corporation (MSFT) a debt-free halal stock worth considering for investment at this time? This inquiry reflects the growing interest among investors in ethical investment strategies and the search for stocks that align with specific financial principles.

Significantly, Microsoft Corporation (NASDAQ:MSFT) holds a prominent position in the broader investment landscape, ranking second on the list of the 30 Most Popular Stocks Among Hedge Funds. According to Artisan's database, at the end of the fourth quarter, a total of 317 hedge fund portfolios included Microsoft, a notable increase from 279 in the previous third quarter. In its fiscal second quarter of 2025, Microsoft reported impressive revenues of $69.6 billion, marking a 12% increase year-over-year. While Artisan acknowledges Microsoft’s potential as a robust investment, they express a stronger conviction in the belief that AI stocks could deliver even greater returns in a shorter timeframe. For investors seeking promising AI stocks similar to NVIDIA but trading at more favorable earnings multiples, Artisan has recommended a report on some of the cheapest AI stocks available.