What Makes MSCI (MSCI) a Good Long-Term Investment?

Baron Funds, an investment management company, released its “Baron Growth Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund declined 4.25% (Institutional Shares) in the first quarter, exceeding the Russell 2000 Growth Index’s (the Benchmark) 11.12% fall.  The Trump administration’s rapid agenda implementation led the stock to decline in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its first-quarter 2025 investor letter, Baron Growth 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 -1.93%, and its shares gained 15.29% of their value over the last 52 weeks.  On June 9, 2025, MSCI Inc. (NYSE:MSCI) stock closed at $558.00 per share, with a market capitalization of $43.173 billion.

Baron Growth Fund stated the following regarding MSCI Inc. (NYSE:MSCI) in its Q1 2025 investor letter:

“Shares of MSCI Inc. (NYSE:MSCI), a leading provider of investment decision support tools, detracted from performance. The company reported solid quarterly earnings and gave preliminary 2025 guidance largely in line with expectations. End-market pressures persisted, but management sounded more upbeat regarding 2025 when discussing both the new sales pipeline and a normalization in cancellations after an elevated 2024. While near-term macro uncertainty remains, we retain long-term conviction, as MSCI owns strong, “all weather” franchises and remains well positioned to benefit from numerous secular tailwinds in the investment community.”

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 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 Aoris Investment Management’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q1 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.