Should You Increase Your Holdings in MSCI (MSCI)?

Polen Capital, an investment management company, released its “Polen Focus Growth Strategy” third quarter 2024 investor letter. A copy of the letter can be downloaded here. The market turned volatile in the third quarter. In the third quarter, the fund returned 3.21% (gross) and 2.99% (net) compared to 3.19% for the Russell 1000 Growth Index and 5.89% for the S&P 500 Index. In addition, please check the fund’s top five holdings to know its best picks in 2024.

Polen Focus Growth Strategy highlighted stocks like MSCI Inc. (NYSE:MSCI) in its Q3 2024 investor letter. MSCI Inc. (NYSE:MSCI), provides critical decision support tools and solutions for the investment community. The one-month return of MSCI Inc. (NYSE:MSCI) was -2.62%, and its shares gained 15.29% of their value over the last three months. On November 11, 2024, MSCI Inc. (NYSE:MSCI) stock closed at $597.25 per share with a market capitalization of $46.807 billion.

Polen Focus Growth Strategy stated the following regarding MSCI Inc. (NYSE:MSCI) in its Q3 2024 investor letter:

“We added to several existing positions in the quarter including Adobe, Workday, Shopify, MSCI Inc. (NYSE:MSCI), and Paycom Software. With MSCI, we re-initiated a position last quarter after having previously owned it from 2019 to 2022. We were able to purchase the shares at an attractive valuation on the back of a quarter that saw elevated cancellations in their index business. We expected this to be a one-off event, and strong results from the most recent quarter gave us confidence to bring the position up to a more average weight.”

A successful portfolio manager working on a laptop in a large office with a city view, representing the success of the company in the financial sector.

MSCI Inc. (NYSE:MSCI) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 47 hedge fund portfolios held MSCI Inc. (NYSE:MSCI) at the end of the second quarter which was 53 in the previous quarter. MSCI Inc. (NYSE:MSCI) reported adjusted earnings per share growth of 12% and total revenue growth of 16% in the third quarter 2024. While we acknowledge the potential of MSCI Inc. (NYSE:MSCI) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In another article, we discussed MSCI Inc. (NYSE:MSCI) and shared ClearBridge Growth Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q3 2024 page for more investor letters from hedge funds and other leading investors.

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