Here's Rothschild &Co LongRun Equity's Case Study on MSCI (MSCI)

Rothschild & Co Wealth Management, an investment management company, released its LongRun Equity strategy first quarter 2025 investor letter. A copy of the letter can be downloaded here. The firm is a committed long-term business owner, focused on a portfolio of high-quality companies. The strategy declined 6.6% (in EUR, unhedged) in the first quarter compared to its benchmark, which fell 5.4%. The underperformance was due to a heavy decline in everything ‘technology’ related, while the consumer staples businesses contributed positively to the strategy’s performance.  In addition, you can check the top 5 holdings of the fund to know its best picks in 2025.

In its first-quarter 2025 investor letter, Rothschild & Co LongRun Equity Strategy highlighted stocks such as MSCI Inc. (NYSE:MSCI). 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 2.81%, and its shares gained 18.70% of their value over the last 52 weeks. On July 2, 2025, MSCI Inc. (NYSE:MSCI) stock closed at $582.85 per share, with a market capitalization of $45.096 billion.

Rothschild & Co LongRun Equity Strategy stated the following regarding MSCI Inc. (NYSE:MSCI) in its Q1 2025 investor letter:

"MSCI Inc. (NYSE:MSCI) is a leading provider of decision support tools and solutions for the investment community. Its offerings help clients better understand and analyse the drivers of risk and return, enhance transparency and ultimately build better portfolios. Whilst only spun out of Morgan Stanley in 2006, MSCI draws on over 50 years of deep knowledge of the investment process and expertise in research, data and technology.

MSCI’s product and service portfolio is comprised of four main components which in turn are its reporting segments: i) indexes (Index segment), ii) portfolio construction and risk management tools (Analytics), iii) environmental, social and governance and climate solutions (ESG & Climate) and private asset data and analytics (All other – Private Assets). At the nexus of MSCI was the Index business which remains its bedrock to this day whilst the other segments were largely built up via acquisitions..." (A copy of the letter can be downloaded here)

MSCI Inc. (NYSE:MSCI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 63 hedge fund portfolios held MSCI Inc. (NYSE:MSCI) at the end of the first quarter, which was 62 in the previous quarter. 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 undervalued AI stock set for massive gains.

In another article, we covered MSCI Inc. (NYSE:MSCI) and shared Baron Growth Fund's views on the company. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. While we acknowledge the potential of MSCI 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.

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