Here's What Lifted Morgan Stanley (MS) in Q3

Cullen Capital Management, LLC, operating under the name Schafer Cullen Capital Management, Inc. (SCCM), has released its “SCCM Value Equity Strategy” third-quarter investor letter. A copy of the letter can be downloaded here. The US equity market continued the rally in the third quarter, with the S&P 500 returning 8.1% and the Russell 1000 Value surging 5.3%. The value equity strategy returned 6.9% (gross of fees) and 6.8% (net of fees) in the quarter, while the Russell 1000 Value and S&P 500 returned 5.3% and 8.1%, respectively, during the same period. The strategy returned 13.0% (gross), YTD, compared to the Russell 1000 Value’s +11.7% return and the S&P 500’s +14.8% return. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its third-quarter 2025 investor letter, SCCM Value Equity Strategy highlighted stocks such as Morgan Stanley (NYSE:MS). Morgan Stanley (NYSE:MS) is a financial holding company that offers various financial products and services. The one-month return of Morgan Stanley (NYSE:MS) was 2.64%, and its shares gained 23.24% of their value over the last 52 weeks. On November 19, 2025, Morgan Stanley (NYSE:MS) stock closed at $162.29 per share, with a market capitalization of $259.069 billion.

SCCM Value Equity Strategy stated the following regarding Morgan Stanley (NYSE:MS) in its third quarter 2025 investor letter:

"Our strong stock selection within Financials made the sector the largest contributor to relative performance for the quarter. Morgan Stanley (NYSE:MS) (+13.6%) reported record Capital Markets revenue in the second quarter, driven by equity capital markets activity and equities trading volumes. The company’s Wealth Management division reported 14% y/y revenue growth, as fund flows grew 7% and market share was strong. Management was able to control expenses well despite the strong revenue growth, as a 70.7% efficiency ratio was 130 bps below consensus estimates."

Morgan Stanley (NYSE:MS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 67 hedge fund portfolios held Morgan Stanley (NYSE:MS) at the end of the second quarter, compared to 68 in the previous quarter. In the third quarter of 2025, Morgan Stanley (NYSE:MS) reported revenues of $18.2 billion and EPS of $2.80. While we acknowledge the potential of Morgan Stanley (NYSE:MS) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Morgan Stanley (NYSE:MS) and shared the list of stocks Jim Cramer discussed. In addition, please check out our hedge fund investor letters Q3 2025 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.