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Why Buy MSCI (MSCI) Stock for Turbulent Times?

Alex Smith

Aoris Investment Management recently released its Q1 2020 Investor Letter, a copy of which you can download below. The Aoris International Fund aims to generate returns of 8–12% p.a. over a market cycle. The portfolio is long-only and highly selective. You should check out Aoris Investment Management’s top 5 stock picks for investors to buy right now, which could be the biggest winners of the stock market crash. There weren’t a lot of funds who could deliver these kinds of returns without shorting the market or using aggressive put options.

In the said letter, Aoris Investment Management highlighted a few stocks and Msci Inc. (NYSE:MSCI) is one of them. MSCI is a finance company based in New York. Year-to-date, Msci Inc. (NYSE:MSCI) stock gained 30.6% and on May 21st it had a closing price of $333.35. Here is what Aoris Investment Management said:

"MSCI produces indexes that are used in measurement and portfolio construction. It benefits from its absolutely dominant position in global indexes, a very long-tenured and longterm–minded executive team, and the absence of any areas of competitive weakness. Net debt to EBITDA is 2.0x, a comfortable level given the very high degree of recurring revenue.

We expect MSCI to have another strong year in 2020. We also expect over the course of the cycle to see increased interest in MSCI’s portfolio risk measurement and analytics capabilities, used by asset owners and asset managers to stress test portfolios to see how they may perform in abnormal environments."

Msci Inc (NYSE:MSCI)

In Q3 2019, the number of bullish hedge fund positions on Msci Inc. (NYSE:MSCI) stock increased by about 3% from the previous quarter (see the chart here), so a number of other hedge fund managers seem to agree with MSCI’s growth potential. Our calculations showed that Msci Inc. (NYSE:MSCI) isn’t among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 185% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 109 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds' poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds

At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, we believe electric vehicles and energy storage are set to become giant markets, and we want to take advantage of the declining lithium prices amid the COVID-19 pandemic. So we are checking out investment opportunities like this one. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. Our best call in 2020 was shorting the market when S&P 500 was trading at 3150 after realizing the coronavirus pandemic’s significance before most investors. You can subscribe to our free enewsletter below to receive our stories in your inbox:

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