Improved capital allocation and growth of its existing businesses will lead Microsoft shares higher following the departure of CEO Steve Ballmer, Ariel Investments Vice Chairman Charles Bobrinskoy said Friday.
"This was a value stock in which people really didn't like how the company was being run, but the stock was incredibly cheap. "And so people think that he's been a bad allocator of capital. We would probably agree with that."
Balmer, who succeeded Bill Gates as CEO in 2000, announced that he planned to leave his post within the next 12 months, sending the stock higher.
(Read more: Microsoft CEO Ballmer to step down within 12 months)
Shares of Microsoft closed at $34.75, up 7.29 percent.
On CNBC's "Fast Money," Bobrinskoy said that the next chief executive of Microsoft would likely have one strong skill.
"We think they're going to bring in somebody with capital allocation skills," he said. "Think IBM. Think how well IBM has done over the last three years because they've done so well with capital allocation."
Bobrinskoy, whose Ariel Focus Fund holds Microsoft as its largest position, chided the company for its $8 billion acquisition of Skype and called the investment in online search engine Bing "kind of wasteful."
The return of Bill Gates, he added, wasn't likely.