Mar Vista Investment Partners, LLC, an investment management company, released the “Mar Vista U.S. Quality Select Strategy” first quarter 2025 investor letter. A copy of the letter can be downloaded here. US stocks suffered their worst quarter in three years, with the steepest losses since 2022, due to tariff concerns and economic stagnation fears. In the first quarter, the strategy returned -3.05% net-of-fees compared to -4.49% and -4.27% returns for the Russell 1000® Index and the S&P 500® Index, respectively. Stock selection within healthcare, communication services, and consumer staples detracted from the fund’s performance during the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its first-quarter 2025 investor letter, Mar Vista U.S. Quality Select Strategy highlighted stocks such as Microsoft Corporation (NASDAQ:MSFT). Microsoft Corporation (NASDAQ:MSFT) is a multinational software company that develops and supports software, services, devices, and solutions. The one-month return of Microsoft Corporation (NASDAQ:MSFT) was -0.84%, and its shares lost 2.94% of their value over the last 52 weeks. On April 24, 2025, Microsoft Corporation (NASDAQ:MSFT) stock closed at $387.30 per share with a market capitalization of $2.879 trillion.
Mar Vista U.S. Quality Select Strategy stated the following regarding Microsoft Corporation (NASDAQ:MSFT) in its Q1 2025 investor letter:
“Microsoft Corporation (NASDAQ:MSFT) reported strong bookings, highlighted by an accelerating remaining performance obligation of nearly $300 billion, representing 36% year-over-year growth, as well as healthy cloud revenue growth of 21% year-over-year. Despite this solid performance, MSFT stock came under pressure as Azure revenue growth, at 31% year-over-year, came in at the low end of expectations. Additionally, guidance for the March quarter forecasted Azure revenue growth of 31% to 32%, reflecting a slowdown in non-AI related Azure growth.
