Rationale Behind FPA Crescent Fund’s Sale of Microsoft (MSFT)

Core Insights - The FPA Crescent Fund achieved a return of 3.09% in Q4 2025, with annual returns reaching 17.65%, outperforming the global market's 79.0% of the MSCI AWCI index [1] - The fund emphasizes a "value-aware" investment strategy, avoiding speculative sectors and focusing on long-term investments [1] Company Highlights - Microsoft Corporation (NASDAQ:MSFT) is highlighted as a key stock in the FPA Crescent Fund's portfolio, with a one-month return of -9.00% and a 52-week gain of 4.71% [2] - As of January 30, 2026, Microsoft shares closed at $430.29, with a market capitalization of $3.195 trillion [2] - The FPA Crescent Fund reflects on its past ownership of Microsoft from 2010 to 2020, noting the company's significant value creation under its current management [3] - The fund's analysis questions whether Microsoft could continue to deliver equity-type returns despite potential stagnation in earnings, acknowledging the transformative impact of AI and cloud technologies on the business [3]