Is Morgan Stanley (MS) a Great Buy?

Sound Shore Management, an investment management firm, published its second-quarter 2022 investor letter – a copy of which can be downloaded here. The Sound Shore Fund Investor Class (MUTF:SSHFX) and Institutional Class (MUTF:SSHVX) declined 13.45% and 13.41%, respectively, in the second quarter of 2022, trailing the Russell 1000 Value Index (Russell Value) which declined 12.21%. As long-term investors, Sound Shore’s 30-year annualized returns of 9.65% and 9.91%, for SSHFX and SSHVX, respectively, as of June 30, 2022, were ahead of the Russell Value at 9.54%. Go over the fund’s top 5 positions to have a glimpse of its finest picks for 2022.

In its Q2 2022 investor letter, Sound Shore Fund mentioned Morgan Stanley (NYSE:MS) and explained its insights for the company. Founded in 1935, Morgan Stanley (NYSE:MS) is a New York, New York-based financial services company with a $154.5 billion market capitalization. Morgan Stanley (NYSE:MS) delivered a -8.30% return since the beginning of the year, while its 12-month returns are down by -10.58%. The stock closed at $90.01 per share on August 19, 2022.

Here is what Sound Shore Fund has to say about Morgan Stanley (NYSE:MS) in its Q2 2022 investor letter:

“Morgan Stanley (NYSE:MS) is a long term holding, retreated despite having business models that are more resilient, over-capitalized and underappreciated by the market. In June, the Federal Reserve’s stress tests again blessed the health of the overall banking system. Morgan Stanley stood out with an 11% increase in its annual dividend, yielding 4.1% at quarter’s end.”

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Our calculations show that Morgan Stanley (NYSE:MS) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Morgan Stanley (NYSE:MS) was in 61 hedge fund portfolios at the end of the second quarter of 2022, compared to 65 funds in the previous quarter. Morgan Stanley (NYSE:MS) delivered a 13.41% return in the past 3 months.

In December 2021, we also shared another hedge fund’s views on Morgan Stanley (NYSE:MS) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q2 page.

Disclosure: None. This article is originally published at Insider Monkey.