Does MSCI (MSCI) Have a Long Runway for Growth?

Madison Investments, an investment advisor, released its “Madison Large Cap Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund decreased 2.2% in the third quarter compared to an 8.1% gain for the S&P 500 Index. The current market focus on short-term profits led the fund to underperform the benchmark considerably in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Madison Large Cap Fund 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 4.22%, and its shares lost 4.26% of their value over the last 52 weeks. On November 10, 2025, MSCI Inc. (NYSE:MSCI) stock closed at $576.95 per share, with a market capitalization of $43.352 billion.

Madison Large Cap Fund stated the following regarding MSCI Inc. (NYSE:MSCI) in its third quarter 2025 investor letter:

“We initiated a position in MSCI Inc. (NYSE:MSCI). MSCI Inc. is a financial technology company that serves asset owners, asset managers, and other financial intermediaries. It is probably best known for its flagship indexes, such as the MSCI ACWI and MSCI EAFE, but it also calculates many thousands of other custom indexes daily. Additionally, it offers clients a broad suite of risk management tools and data products. We believe that MSCI is a unique, high-quality business, anchored by its indexes, which are the standard for measuring the performance of global and international equity markets. MSCI is also in the early innings of creating standards around risk and return measurement for investors allocating to private assets. Importantly, organic growth at MSCI requires minimal capital investments, so margins are high and free cash flow is robust. Its management team is also excellent. CEO Henry Fernandez and President Baer Pettit have both been with MSCI for decades and built it from a small subsidiary within Morgan Stanley into the global franchise it is today. The company’s compensation structure encourages both business growth and shareholder return, and management owns a meaningful stake in the company. Overall, we believe that MSCI has a long runway for growth as it’s well-positioned to capitalize on secular industry trends, launch products that reach new customer groups, and broadly benefit from the growth of global capital markets.”

MSCI Inc. (NYSE:MSCI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 65 hedge fund portfolios held MSCI Inc. (NYSE:MSCI) at the end of the second quarter, up from 63 in the previous quarter.  While we acknowledge the risk and potential of MSCI Inc. (NYSE:MSCI) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MSCI Inc. (NYSE:MSCI) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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.