In This Article:
Exploring the Strategic Moves of MS Global Franchise Portfolio (Trades, Portfolio) in Q4 2024
MS Global Franchise Portfolio (Trades, Portfolio) recently submitted its N-PORT filing for the fourth quarter of 2024, shedding light on its strategic investment decisions during this period. Established on November 28, 2001, the Morgan Stanley Institutional Fund Global Franchise Portfolio Class I (MSFAX) is managed by a dedicated investment team. This team adheres to a disciplined investment process, focusing on bottom-up stock selection. Their approach is driven by a thorough assessment of each stock's quality and valuation characteristics, with sector, industry, and stock weightings reflecting these evaluations. The fund's investable universe comprises companies with strong franchise businesses, characterized by sustainable, high unlevered return on invested capital (ROIC). This is achieved through a combination of recurring revenues, high gross margins, and low capital intensity, supporting robust free cash flow generation. The team prioritizes high-quality businesses with unique intangible assets, sustainable high ROIC, and strong financial management.
Key Position Increases
MS Global Franchise Portfolio (Trades, Portfolio) also increased stakes in a total of 11 stocks, among them:
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The most notable increase was L'Oreal SA (XPAR:OR), with an additional 109,502 shares, bringing the total to 325,475 shares. This adjustment represents a significant 50.7% increase in share count, a 1.42% impact on the current portfolio, and a total value of 115,219,090.
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The second largest increase was Procter & Gamble Co (NYSE:PG), with an additional 173,041 shares, bringing the total to 551,337. This adjustment represents a significant 45.74% increase in share count, with a total value of $92,431,650.
Summary of Sold Out
MS Global Franchise Portfolio (Trades, Portfolio) completely exited 3 holdings in the fourth quarter of 2024, as detailed below:
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Reckitt Benckiser Group PLC (LSE:RKT): MS Global Franchise Portfolio (Trades, Portfolio) sold all 1,112,927 shares, resulting in a -2.37% impact on the portfolio.
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Universal Music Group NV (XAMS:UMG): MS Global Franchise Portfolio (Trades, Portfolio) liquidated all 553,166 shares, causing a -0.5% impact on the portfolio.
Key Position Reduces
MS Global Franchise Portfolio (Trades, Portfolio) also reduced positions in 27 stocks. The most significant changes include:
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Reduced Booking Holdings Inc (NASDAQ:BKNG) by 5,949 shares, resulting in a -34.76% decrease in shares and a -0.87% impact on the portfolio. The stock traded at an average price of $4,816.41 during the quarter and has returned -4.27% over the past 3 months and 0.47% year-to-date.
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Reduced SAP SE (XTER:SAP) by 74,413 shares, resulting in a -8.36% reduction in shares and a -0.59% impact on the portfolio. The stock traded at an average price of 223.19 during the quarter and has returned 23.30% over the past 3 months and 16.46% year-to-date.